Markets fall from record highs | Calamatta Cuschieri

Markets retreat from record highs and Apple, Donald Trump in talks of tariff exemption

US markets retreated on Wednesday however closed up from the session’s lows as reports emerged that the US-China trade deal may not be completed this year. The Dow Jones Industrial Average lost 112.93 points, or 0.4 percent, to at 27,821, while the S&P 500 fell 11.72 points, or 0.4 percent, to 3,108.46. The Nasdaq Composite Index meanwhile briefly traded higher before closing 43.92 points lower, or 0.5 percent, at 8,526.73.

European markets also dropped following the latest concerns over the US-China trade talks with President Donald Trump threatening to further raise tariffs with China if no deal was reached. The pan-European STOXX 600 index lost 0.69 percent to 402.70 with Germany’s DAX declining 0.77 percent to 13,118.83. The UK’s FTSE 100 fell 1.25 percent to 7,232.41.

Maltese markets followed the trend and also traded lower with the MSE Equity Total Return Index closing down 0.425 percent at 9,770.805. International Hotel Investments Plc led the losses with shares down 5.29 percent at €0.805, followed by Malita Investments Plc which slid 1.1 percent to €0.90. HSBC Bank Plc however posted the largest gain with shares up 1.57 percent at €1.29.

Trump considers tariff exemption for Apple

US President Donald Trump announced after touring a plant that assembles Apple Inc computers on Wednesday that he was considering whether to exempt the U.S. company from tariffs on imports from China. Apple Chief Executive Tim Cook, who has a strong relationship with President Trump, has sought relief for Apple from the U.S. tariffs, which are part of a months-long tit-for-tat trade war between the world’s largest economies.

Earlier this month, Apple also asked the Trump administration to waive tariffs on Chinese-made Apple Watches, iPhone components and other consumer products. Apple announced in September it would make its new Mac Pro computers in Austin. The announcement came days after U.S. trade regulators approved 10 out of 15 requests for tariff exemptions filed by Apple amid a broader reprieve on levies on computer parts.

Apple also announced it had started construction of a new campus in Austin that will employ 5,000 workers, with the capacity to grow to 15,000. It is expected to open in 2022. This coincides Trump’s goal of boosting the US manufacturing sector as he has taken to Twitter to pressure US companies into keeping jobs at home.
 

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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