Markets start good, end mixed | Calamatta Cuschieri

U.S. markets closed lower on Tuesday, erasing the day’s earlier gains with major indexes turning decisively negative in afternoon trading and ending near their lows of the day as uncertainty over trade policy and other geopolitical issues remained high. The Dow Jones Industrial Average fell 178.88 points, or 0.7%, to 24,834.41 whilst the S&P 500 SPX, -0.31% slipped 8.57 points, or 0.3%, to 2,724.44.

European stocks closed higher Tuesday, as China said it would reduce tariffs on cars and auto parts and pressure on Italian markets eased. The U.K.’s FTSE 100 index gained 0.2% to end at 7,877.45, logging a second record close in a row as traders welcomed signs that the risk of a full-blown trade war are easing. The pound swung between small gains and losses after several Bank of England members — including Gov. Mark Carney — appeared at a hearing on inflation and monetary policy before lawmakers.

Tesla price cut for Chinese market

Tesla Inc has slashed up to $14,000 off the sticker price of its Model X in China after Beijing announced major tariff cuts for imported automobiles, a potential sales boost for the U.S. firm as the world’s largest auto market pivots towards electric cars. This amounts to a price cut of just over 6% and will also be applied to the Model S as the company said that any of its cars sold in China would be subject to adjusted prices, even before the tariff change comes into effect on July 1.

The price of a top-of-the range Model X will be cut to 1.3 million yuan ($203,830) but that remains well above the $140,000 cash price-tag before savings for the priciest version in the United States - Tesla’s Model X P100D. Other carmakers, including Toyota and BMW, said that they would look at adjusting their retail prices in China after the tariff cut to provide competitive offers to consumers.

OPEC to decide on production boost

The Organization of the Petroleum Exporting Countries (OPEC) may decide to raise oil output as soon as June due to worries over Iranian and Venezuelan supply and after Washington raised concerns the oil rally was going too far. The organization’s members from the Gulf are leading the initial talks on when the exporting group can boost oil production to cool the oil market after crude rose above $80 a barrel last week, and how many barrels each member can add.

Saudi Energy Minister Khalid al-Falih is set to meet his counterparts from Russia and the United Arab Emirates, which holds the OPEC presidency in 2018, in St. Petersburg this week to discuss this issue. Earlier this month, an OPEC source familiar with the kingdom’s oil thinking told reporters that Saudi Arabia is monitoring the impact on oil supplies of the U.S. withdrawal from the Iran nuclear deal and is ready to offset any shortage but it will not act alone to fill the gap.

Disclaimer:

This article was issued by Peter Petrov, Junior 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.