Global markets rally | Calamatta Cuschieri

World markets advance whilst “We Work” cancels its IPO

US markets started the week higher and reversed Friday’s losses after officials from the Treasury Department stated that it is not considering blocking Chinese companies from listing on U.S. exchanges ‘at this time. The Dow Jones Industrial Average gained 96.58 points, or 0.4 percent, to 26,916.83, whilst the S&P 500 index edged up 14.95 points, or 0.5 percent, to 2,976.74. The Nasdaq Composite Index advanced 6.91 points, or 0.1 percent, to close the session at 7,999.34.

European markets also climbed as a higher open on Wall Street and a decline in the Euro supported gains later into the session. The pan-European Stoxx 600 index closed up 0.4 percent, logging its best monthly gain since June. Germany’s DAX also gained 0.4 percent on the back of a strong performance from exporters, which benefited from the weaker Euro. The UK’s FTSE 100 however closed lower as commodity linked stocks and oil majors came under pressure.

Maltese markets also moved higher with the MSE Equity Total Return Index closing up 0.338 percent and breaking the 10,000-point barrier to a record high. GlobalCapital Plc led the gains with shares up 8 percent at €0.27, followed by MIDI Plc, which closed up 6.45 percent at €0.66. HSBC Bank Malta Plc also closed higher with shares up 2.14 percent at €1.43.

“We Work” postpones IPO

The We Company on Monday filed to withdraw its initial public offering, a week after the parent company of the SoftBank-backed office-sharing startup ousted founder Adam Neumann as its chief executive officer. The company’s high-yield bond price slid to fresh lows after the move was announced earlier this week.

“We have decided to postpone our IPO to focus on our core business, the fundamentals of which remain strong,” WeWork’s newly appointed co-CEOs Artie Minson and Sebastian Gunningham said on Monday. “We have every intention to operate WeWork as a public company and look forward to revisiting the public equity markets in the future,” they added.

WeWork’s doomed IPO marks a rough period for startups that have been going public in recent weeks. Last week, U.S. entertainment and talent agency company Endeavor Group Holdings pulled its IPO, while shares of Peloton Interactive Inc, the fitness startup known for on-demand workout programs on its exercise bikes, slid as much as 7% in their market debut.

 

This article was issued by Peter Petrov, 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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