Markets summary and Trump’s delay in tariffs | Calamatta Cuschieri

Maltese markets erased their previous gain and closed lower on Tuesday with the MSE Equity Total Return Index moving 0.395% downwards to 9,758.41 points. Malita Investments p.l.c jumped 1.19% followed by a 0.67% rise in HSBC Bank Malta p.l.c, both coming to a close of €0.85 and €1.50 respectively. Meanwhile, Simonds Farsons Cisk p.l.c. experienced a loss of 2.97% and closed at €9.80.

US stocks rose after hopes that Washington and Beijing could eventually resolve trade issues. The Dow Jones Industrial Average experienced a 1.44%, or 372.54 points, increase with Apple and Intel shares backing 25% of the index’s intraday rally. The Nasdaq Composite Index increased by 152.95 points, or 1.95%, whilst the S&P500 index jumped 1.48%, or 42.57 points.

European markets also experienced positive gains with the automotive and technology sectors being amongst the highest gainers in Europe. The pan-European STOXX 600 index jumped 0.5%, erasing previous session losses of up to 0.8%. The London’s FTSE 100 index was up by 0.33% at 7,250.90.

Trump’s decision to delay tariffs

President Trump announced that he will be postponing tariffs on consumer-favourite laptops and cell phones produced in China, including iPhones and Xboxes. These tariffs will be put off until till the 15th of December. Tariffs will also be exempted from certain clothing, toys and footwear.

Silicon Valley had been pressuring the White House to delay or withdraw any tariffs as for companies to avoid rising prices ahead of the Christmas shopping season. This announcement from Trump followed after the Government identified that the price of computers increased 2.8% for the month of July, experiencing the biggest monthly increase since 2005.

Norwegian Air to end flights between the US and Ireland

Norwegian Air stated that it is cutting trans-Atlantic routes between Ireland and three US and Canadian airports due to Boeing 737 Max aircraft making the routes ‘’no longer commercially viable’’. The airline decided to take this step due to uncertainties about whether the Boeing 737 Max will return to air after aviation authorities stopped the plane from operating following the occurrence of two fatal accidents.

The airline carrier announced that it would stop flying from Dublin, Cork and Shannon to the US and Canada from the 15th of September.
 

This article was issued by Nadiia Grech, Juniior 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.