Dow and S&P hit new records | Calamatta Cuschieri

Fresh records for US stocks, Pressure on oil prices and Ford & VW’s new friendship

US markets closed mostly higher with the Dow and S&P hitting all-time highs after Fed Chairman Jerome Powell gave investors fresh confidence for an imminent interest rate cut. The Dow Jones Industrial Average gained 227.88 points, or 0.85 percent, to break through the 27,000 barrier and close at 27,088.08 whilst the S&P 500 index advanced 6.84 points to 2,999.91. The Nasdaq Composite Index meanwhile slipped 6.49 points, or 0.08 percent, to end the session at 8,196.04.

European markets also drove higher on the hopes of a Fed rate cut however remained subdued by new data showing inflation in the Euro zone’s biggest economy for June remained below the ECB’s target. The pan-European STOXX 600 index advanced 0.3 percent with most of the region’s indexes posting gains.

Maltese markets closed mostly unchanged at 9,806.119 as RS2 Software Plc’s 4.57 percent gains were offset by falls in Mainstreet Complex Plc and Malta International Airport Plc which retreated 3.94 percent and 1.41 percent respectfully. RS2 shares closed at €1.83 whilst MSC and MIA shares closed at €0.61 and €7.00 respectfully.

Oil slips on lower demand

Oil prices fell on Thursday as The Organisation of the Petroleum Exporting Countries (OPEC) forecast slower demand for its crude next year, with crude futures easing from their highest in more than a month after U.S. producers cut about half of their output in the Gulf of Mexico. Brent crude futures fell 49 cents to settle at $66.52 a barrel whilst U.S. West Texas Intermediate crude futures fell 23 cents to settle at $60.20 a barrel.

OPEC gave its first 2020 forecasts in a monthly report, saying the world would need 29.27 million barrels per day (bpd) of crude from its 14 members next year, down 1.34 million bpd from this year. The forecast points to the return of a surplus despite an OPEC-led pact to restrain supplies, and was seen as a drag on prices.

Volkswagen to team up with Ford

Volkswagen AG will invest in Ford Motor Co.’s autonomous-car partner Argo AI at a valuation of about $7 billion as two of the world’s largest automakers expand an alliance formed earlier this year, according to sources familiar with the matter. VW, the world’s top automaker, offers the industry’s most ambitious roll-out of electric models, while Ford, also in the top 10, is developing advanced self-driving technology with Argo.

Teaming up with its U.S. peer is one of the key initiatives of VW Chief Executive Officer Herbert Diess to overhaul the German industrial giant. In January he ruled out equity ties with Ford. The German company cleared the way for a deal with Argo by backing out of a partnership with Silicon Valley startup Aurora Innovation Inc. last month.

This article was issued by Peter Petrov, junior trader at Calamatta Cuschieri. For more information visit, 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.