Markets drift lower | Calamatta Cuschieri

US markets ended lower on Wednesday with drama playing out between members of Congress and the White House over additional pandemic aid. The Dow Jones Industrial Average lost 97.97 points, or 0.4 percent, to at 28,210.82, with the S&P 500 retreating 7.56 points, 0.2 percent, to 3,435.56. The Nasdaq Composite moved 31.80 points lower, or 0.3 percent, to end the session at 11,484.69.

European stocks also fell as losses in healthcare and construction stocks outweighing the gains in the basic materials sector. The pan-European Stoxx 600 index lost 1.3 percent and the UK’s FTSE 100 also underperformed as a surge in the pound hurt stocks after bullish Brexit comments.

Maltese markets followed the trend and also closed slightly lower, with the MSE Equity Total Return index down 0.08 percent at 7,104.347 points. Mapfre Middlesea plc posted the largest drop with shares down 4 percent at €1.92, followed by Malta Properties Company plc which lost 3.92 percent to €0.49. Lombard Bank Malta Plc meanwhile recorded the largest gain with shares up 10.23 percent at €1.94.

Airlines pull back routes

British Airways owner IAG warned the travel slump from the coronavirus pandemic had deepened, forcing it to axe even more of its winter flying schedule after it reported on Thursday a quarterly loss of 1.3 billion euros (1.2 billion pounds). As a second wave of COVID-19 infections spreads across Europe, airlines are facing a bleak winter and IAG joins Lufthansa, Ryanair and easyJet in cutting back already anaemic schedules.

IAG’s loss was far larger than the 920 million euros forecast by analysts, as passenger numbers plunged and it struggled to even half-fill its planes, illustrating the scale of the challenge faced by the company’s new boss, Luis Gallego, who took over in September. Its shares dropped 3% to 97 pence. The stock has lost 78% in the year-to-date as the pandemic has crushed its business.

LG Display sees a profit again

South Korea's LG Display Co Ltd meanwhile reported a profit for July-September, ending a six-quarter run of loss, helped by shipments for Apple’s new iPhone and stay-at-home trends boosting panel demand for TVs and laptops.

LG Display posted a third-quarter operating profit of 164 billion won ($145 million) versus a loss of 437 billion a year earlier. It also painted a positive outlook for its sales to Apple, which would offset the suspension of sales to China’s Huawei as a result of U.S. sanctions.

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.