Markets retreat from record highs | Calamatta Cuschieri

Investors take profits from record highs, Alphabet signs new Cloud customer and TeamViewer records nearly double profits

US markets mostly edged lower except the Dow which managed to squeeze out a slight gain. The Dow Jones Industrial Average moved up around 10 points, or less than 0.1 percent, to 27,691.49 points whilst the S&P 500 index slipped 6 points, or 0.2 percent, to 3,087.01. The Nasdaq Composite Index retreated 11 points, or 0.1 percent, to close the session at 8,464.27.

European markets also dipped as investors followed the latest eruptions of violence in Hong Kong and developments on the UK’s upcoming General Elections. The pan-European Stoxx 600 index fell 0.22 percent to 404.52 with Germany’s Dax dropping 0.2 percent to 13,201.60. The UK’s FTSE 100 declined 0.57 percent to close at 7,317.44.

Maltese markets followed the trends also moved lower, with the MSE Equity Total Return Index closing down 0.246 percent to 9,842.325. HSBC Bank Malta Plc led the move lower as shares closed down 3.85 percent at €1.25. RS2 Software Plc posted the largest gains of the session with shares up 1.92% at €2.12.

Alphabet signs biggest Cloud client

Alphabet Inc’s Google has signed its biggest cloud-computing customer in healthcare to date, in a deal giving it access to datasets that could help it tune potentially lucrative artificial intelligence tools. The deal was mentioned in Google's July earnings call, but drew scrutiny on Monday after reports emerged that Google would gain personal health-related information of millions of Americans across 21 states.

Though cloud storage is a business with thinning profit margins, Google Cloud has said it hopes to separate itself from larger rivals Microsoft Azure and Amazon Web Services with a superior slate of high-margin AI tools.

TeamViewer posts nearly doubled profits

In more corporate news, German software company TeamViewer, which floated recently in Europe’s biggest initial public offering of 2019, on Monday reported a near-doubling in core profits and an expansion of margins, lifting its shares.

TeamViewer came to market at a time when investors were questioning valuations of software peers like U.S. collaboration tool Slack that trade on high revenue multiples and have often yet to deliver bottom-line profits. Its shares were lifted 5% after the company’s strong third-quarter figures after trading below its IPO price of €26.25.
 

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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