Global markets end mixed | Calamatta Cuschieri

U.S. hypermarket chain Costco Wholesale Corp was forced to shut its first store in China early on its opening day on Tuesday

US markets reversed the morning’s gains and closed lower on Tuesday as earlier optimism for a resolution to the US-China trade dispute had turned to angst for a global economic slowdown. The Dow Jones Industrial Average lost 120.93 points, or 0.5 percent, to 25,777.90, while the S&P 500 index slipped 0.3 percent, or 9.22 points, to 2,869.16. The Nasdaq Composite index fell 26.79 points, or 0.3 percent, to close the session at 7,826.95.

European markets also retreated with the pan-European STOXX 600 index edging down 0.09 percent. The Italian FTSE MIB however rose 0.7 percent and lifted the regional index off its session lows driven by hopes that a snap election could be avoided by an arrangement to form a new government in Rome.

Maltese markets meanwhile ended higher, with the MSE Equity Total Return Index closing up 0.418 percent at 9,795.358 points. Shares in Simonds Farsons Cisk Plc led the gains, closing up 3 percent at €10.30, followed by Bank of Valletta Plc which gained 2.75 percent to close at €1.12. MIDI Plc meanwhile led the losses with shares down 3.03 percent at €0.64.

Costco shuts China store on opening day

U.S. hypermarket chain Costco Wholesale Corp was forced to shut its first store in China early on its opening day on Tuesday, according to state media, after large crowds flocked through the door and caused traffic jams in the Shanghai neighbourhood. “Due to the extremely large crowds at the newly opened supermarket, for the safety of the public we urge that residents consume in a rational manner and choose to go shopping at an off-peak time,” government officials were quoted as saying.

Videos posted on Chinese social media showed thousands of people crowding the aisles of the store in Shanghai’s Minhang district, while signs outside warned incoming shoppers that they might have to wait three hours to park.

Its busy first day came as other big-name Western retailers such as Amazon, Tesco Plc and Carrefour, are retreating from China having struggled to win market share in the face of strong competition from domestic rivals.

 

This article was issued by Peter Petrov, Junior Trader at Calamatta Cuschieri. For more information visit, https://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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