Central Banks boost markets | Calamatta Cuschieri

Markets jump on rate cuts, Slack sees trading debut & Nissan adds Renault members to its board

US markets leaped higher, with the Dow Jones Industrial Average closing within reach of a new record after the US Federal Reserve hinted at a potential interest rate cut. The Dow Jones Industrial Average advanced 249.17 points, or 0.9 percent, to 26,753.17, just 75 points short of its last all-time high whilst the S&P 500 index added 27.72 points, or 1 percent, to 2,954.18. The Nasdaq Composite Index rose 64.02 points, or 0.8 percent, to close the session at 8,051.34.


European markets also surged higher as further dovish remarks the Bank of England and renewed optimism surrounding US-China trade talks boosted investor sentiment. The pan-European STOXX 600 index closed 0.4 percent higher and the UK’s FTSE 100 index gaining 0.3 percent after reaching intra-day highs of 0.7 percent.


Maltese markets also climbed upwards, with the MSE Equity Total Return Index closing up 0.286 percent at 9,850 points. Malta Properties Company Plc led the gains with shares leaping 3.91 percent at €0.665 followed by Trident Estates Plc which gained 0.53 percent to end at €1.90. Shares in Medserv Plc gained 1.79% to close the session at €1.14.


Slack jumps on trading debut


Shares of Slack Technologies Inc, the fast-growing workplace messaging and communication platform, soared nearly 50% in their public trading debut on Thursday, valuing the company at more than $23 billion yet another successful direct listing. Slack’s direct listing differs from a traditional IPO because it does not raise fresh funds. The method was pioneered last year by music streaming business Spotify Technology SA.


Slack is a business-focused messaging and communications platform, similar to group chatrooms, with the ability to collaborate on documents and order conversations by groups and themes. The debut follows a spate of high-profile technology IPOs, some of which, including Uber Technologies Inc and Lyft Inc, had disappointing starts to trading.


 Nissan grants Renault Chairman & CEO seats to its board


Japan’s Nissan Motor Corp. announced it will create a new board committee with seats for alliance partner Renault's chairman and CEO in a bid to avoid a clash with the French automaker at an upcoming shareholders meeting, ending a dispute between the two automakers.


Nissan said it will give Renault Chief Executive Thierry Bollore a seat on its board’s audit committee and Renault Chairman Jean-Dominique Senard a seat on its nomination committee. Senard will also become vice-chairman of the board.


This article was issued by Peter Petrov, junior trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.


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