Markets advance on trade hopes | Calamatta Cuschieri

Global market rally and Tesla forced to up prices

US markets advanced firmly on Thursday as Beijing hinted that it was not in a hurry to respond to the latest round of tariffs imposed by Washington. The Dow Jones Industrial Average gained 326.15 points, or 1.3 percent, to 26,362.25, whilst the S&P 500 index rose 36.64 points, or 1.3 percent, to end at 2,924.58. The Nasdaq Composite Index advanced 116.51 points, or 1.5 percent, to close the session at 7,973.39.

European stocks also gained later on into the session after a weak start, with most of the region’s bourses in the green and Italy leading the gains. The pan-European STOXX 600 index gained 0.61 percent whilst Italy’s FTSE MIB advanced 1.33 percent to its highest level since August 2.

Maltese markets meanwhile slipped lower, with the MSE Equity Total Return Index closing down 0.149 percent at 9,782.831 points. Bank of Valletta Plc posted the biggest loss with shares down 1.78 percent at €1.105, followed by Medserv Plc which closed down 0.83 percent at $1.19. International Hotel Investments Plc however saw a 1.99 percent gain with shares closing at €0.77.

Weakening Yuan prompts Tesla price hike

US electric carmaker Tesla Inc raised its prices for some vehilces in china as the yuan trades at its weakest levels in more than a decade. The US-China trade disputes and a tit-for-tat tariff war between the nations has prompted Tesla, which does not manufacture any vehicles in China and relies on imports, to adjust its prices multiple times over the year.

Tesla’s long-range dual-motor versions of its mass-market Model 3 cars are now 439,900 yuan, up from 429,900 yuan previously. The latest hikes come as China allowed the yuan to weaken against the US dollar earlier this month, raising the cost of US imports and prompting Washington to label China as a currency manipulator, something that Beijing has strongly opposed.

This all takes places in a market where Tesla is gearing up for a major sales push, something which the automaker has previously shied away from. The company is promoting race events, planning showroom parties with DJs and a line of Chinese Tesla stickers for chat apps.

 

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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