Markets Summary and commodities update | Calamatta Cuschieri

Decrease in MSE price index, Gains in European Stocks, Oli and Gold increase

The MSE Equity Price Index decrease as a result of a drop in Bank of Valletta, HSBC Bank Malta plc, FIMBank plc, RS2 Software plc and Grand harbour Marina plc. BOV fell by 0.9% to a €1.14 price level, HSBC eased by 0.7% to €1.47, FIMBank drifted 4.6% to $0.62, RS2 slid 0.5% €1.90 when compared to previous closing price and Grand Harbour Marina dropped by 4.3% to a €0.67 price level. On the other hand, Malta Properties Company plc and PG plc rose by 2.9%, €0.70 and 3%, €1.75 respectively.

European stocks log fourth week of Gains

An increase in banks, miners and automakers stirred European stocks, as continued rotation into the cyclical sector amid signs of progress in U.S.-China trade talks drove the STOXX 600 to its 4th straight week of gains. The past week the global market saw trade tensions between U.S. and China ease down and the European Central Bank decrease rates into negative territory and relaunch bond purchases with no end-date, this resulted banking shares to become the top performers. The euro zone banks’ index rose by 7% which was the biggest weekly gain since March 2017.

Investors who had been buying defensive stock for the majority of the year because of instabilities in the global trade tipping the world into a recession, momentum stocks like automakers and miners were in huge demand this week.

Brent Crude Oil increases by more than 10%

Oil prices rose by more than 10% as a result to a coordinated drone attack which hit the centre of Saudi Arabia’s oil industry, forcing it to cut oil output in half. International benchmark Brent Crude futures rose by 10.36% and U.S. West Texas Intermediate crude futures soared by 9.28%. Drone strikes attacked an oil processing facility at Abqaiq and the nearby Khurais oil field, which resulted in knocking out 5.7 million barrels of daily crude production which can be measured as 50% of the oil output. Saudi Aramco, the national oil company, has reported that they aim to restore about a third of its crude output, or 2 million barrels in the coming days. President Donald Trump said that he was authorising the release of oil from the Strategic Petroleum Reserve to keep the markets “well-supplied.”

Gold rises due to Global Turmoil

Gold and silver prices had an increase of more than 1%, as investors fled to safe-haven assets after an attack on Saudi oil facilities were of a concern over the global energy supply and increasing tensions in the Middle East. Spot gold had an increase of 1.27% while U.S. Gold Futures rose 0.83%. The gold-backed SPDR Gold Trust exchange-traded fund decreased by 0.82%. Similarly to gold, silver is thought of a safe-haven instrument but the metal is also used in the production of consumer electronics goods as well as in the industrial sector, such as solar panels. Spot silver gained 2.96%. 

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.