Markets pull U-turn | Calamatta Cuschieri

US markets pulled a sharp U-turn and recovered from steep losses later into Friday’s session after news the House of Representatives was set to vote on another $3 trillion coronavirus package. The Dow Jones Industrial Average gained 61 points, or just under than 0.3 percent, to 23,685.42, with the S&P 500 rising 11.20 points, or 0.4 percent, to 2,863.70. The Nasdaq Composite Index advanced 70.84 points, or 0.8 percent, to end the session at 9,014.56.

European stocks also climbed higher however gains were trimmed on reports that the U.S. Commerce Department was taking steps to block shipments of semiconductors to Huawei. The pan-European Stoxx 600 index rose 0.5 percent while the German DAX and UK FTSE 100 both gained 1%. The French CAC 40 meanwhile slipped 0.1 percent, erasing its earlier gains.

Maltese markets moved lower with the MSE Equity Total Return Index closing down 0.79 percent at 8,169.326 points. 7 equities traded with HSBC Bank Malta Plc leading the losses with a 5.45 percent drop to €0.955. International Hotel Investments Plc followed behind, dropping 3.39 percent to €0.57. RS2 Software Plc led the gains with shares up 2.6 percent at €1.97.

Ryanair books profit but cuts forecasts

The Irish low-cost carrier, Ryanair, cut its annual passenger traffic target by another 20% and warned it will look at pulling out of some airports across Europe as it booked a 13% rise in annual profit after tax on Monday. Europe’s largest budget carrier said it expects to fly “somewhere under” 80 million passengers in the coming year, down from a target of 100 million given last week and from an original target of 154 million. Ryanair is currently undertaking a major cost cutting drive, with 3,000 pilots and cabin crew likely to lose their jobs as well as 250 people at head office.

Chief Executive Officer Michael O’Leary said the airline would first look at loss-making bases in the UK, Germany and Spain for closure, but may then look at Italy, Belgium and central and eastern Europe if necessary. It is also likely to close the main base of its subsidiary Lauda in Austria, which is undergoing an “existential crisis” due to COVID-19, he said.
 

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.