Monday blues | Calamatta Cuschieri

The week began in a dull tone, with European markets in the red by the most in almost two months, alongside a slide in global equities. The main worrying factor would be the United States Trump administration not being able to get its reforms up and running.

On Friday, after the European markets closed, Republican leaders pulled their healthcare Bill from a House of Representative vote, aiming to replace Obamacare. The failure of the healthcare Bill raises doubts on whether the administration is strong enough and on whether the equity markets can continue the performance seen in the recent months.

On Wall Street, US markets bounced back from the morning’s heavy losses. In mid-session, the NASDAQ pared much of its 1% loss, and made a run for positive territory and was trading practically flat. The tech-heavy composite index was then in the green later on. The S&P 500 and Dow Jones industrial average both lagged with losses but way off their initial lows. Financials were amongst the biggest losers in early trading, with Goldman Sachs heavily weighing down on the Dow Jones 30.

Stabilising the relationship between UK nations

UK’s Prime Minister Theresa May was in Glasgow on Monday, to meet with Scotland’s First Minister Nicola Sturgeon to discuss Brexit. The aim of the meeting was to consolidate the relationship between the countries aiming to strengthen and stabilise UK nations in view of triggering Article 50 in the coming days. 

The meeting was a result of an announcement made by Scotland’s Minister, seeking a second independence referendum in Scotland since the UK government was “not willing to meet Scotland half–way” on terms of leaving the bloc. On the other hand, May insisted in planning to negotiate a Brexit deal that will work for the whole country including Scotland.

Qatar topping up investment in the UK

Qatar will invest £5 billion in the UK over the next three to five years, the Middle Eastern country’s finance minister Ali Shareef al Emadi said on Monday. He noted the investments would focus on infrastructure, technology, energy and real estate.

The finance minister stated that Qatar views investment for the long term, especially in the UK and do not consider the current up and down cycles. “We will do what we think is good for us, it is commercially viable, it has a good vision and a good impact," the minister added.

Qatar has already put £40 billion into the UK, as it owns Harrods, the Olympic Village, a 95% stake in the Shard and a stake in Canary Wharf.

This article was issued by Rodrick Duca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is 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.