Markets surge on rate cuts | Calamatta Cuschieri

US markets surged on Wednesday as investors embraced the surprise interest rate cut from the Federal Reserve. The Dow Jones Industrial Average jumped 1,173.45 points, or 4.5 percent, to 27,090.86 while the S&P 500 climbed 126.75 points, or 4.2 percent, to 3,130.12. The Nasdaq Composite advanced 334 points, or 3.9 percent, to close the session at 9,018.09.

European markets also climbed on the US rate cut and support from other central banks to protect economies from the impact of coronavirus. The pan-European Stoxx 600 index gained 1.36 percent to 386.30 points, while the German climbed 1.2 percent and France’s CAC added 1.3 percent.

Maltese markets meanwhile slipped lower with the MSE Equity Total Return Index edging down 0.039 percent to 9,404.189 points. Malta international Airport Plc led the gains with shares down 2.21 percent at €6.65, followed by Bank of Valletta Plc which closed down 0.95 percent at €1.04. FIMbank Plc on the other hand surged 6.42 percent to close at $0.58.

British airline Flybe collapses from coronavirus pressure

British regional airline Flybe has collapsed on Thursday after a plunge in travel demand, making the long-struggling carrier one of the first big corporate casualties of the coronavirus outbreak. Airlines around the world have been cancelling flights and warning of a hit to profitability after coronavirus first emerged in China, hitting flights across Asia, before it spread to Europe and beyond.

Flybe, the largest independent regional airline in Europe, operated between 81 airports and was owned by Virgin Atlantic, Stobart Group and Cyrus Capital. The owners said they had ploughed more than 135 million pounds into the business in the last 14 months, including around 25 million pounds pledged in January.

“All flights have been grounded and the UK business has ceased trading with immediate effect,” Flybe said after the government walked away from a rescue package agreed in January. The failure of an airline that connects all corners of the United Kingdom with major European destinations not only puts around 2,400 jobs at risk but could also see some airports struggle and regional economies hit.
 

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.