A little bit of fresh air | Calamatta Cuschieri

Market summary

European stocks finished a day of trading in the green on Thursday as investors switched their focus on the United States President Donald Trump's visit in the United Kingdom that started today.

Meanwhile, market watchers have decreased their trade war fears sparked by Washington's latest decision to introduce further tariffs on Chinese goods. The US prepared a list of $200 billion worth of Chinese goods that will be subjected to additional tariffs. China responded with criticism, saying the US decision is "unacceptable" and warning that it will take countermeasures.

In Germany, the DAX ended a day of trading 0.61% higher, led by the gains in the healthcare industry. French CAC 40 rose 0.85% at the closing bell. In London, the FTSE 100 closed 0.82% higher. Astrazeneca was the main advancer, up 3.64% at the close.

On Wall Street, Traders showed appetite for risk as stock markets rebounded, partly with confidence expressed by officials from the United States Federal Reserve about the state of the economy. Statistics showed consumer price growth strengthened to 2.9% on an annual scale in June, the highest level since February 2012, and the core reading hit 2.3%, the strongest point in a year and a half. Treasuries were looking for direction after an initial drop, where the yield curve flattened some more.

A rise in inflation strengthens the case for the central bank's shift to a slightly more hawkish stance in hiking interest rates. President Donald Trump struck a reconciliatory tone in statements during the summit of the North Atlantic Treaty Alliance. Precious metals also rebounded on the wave of positive sentiment and a mixed dollar, while oil remained lower.

Facebook shares rally

Riding on the wave of risk appetite in markets in the United States on Thursday, Facebook Inc. at one point surged 1.8% to $206.19 per share, an all-time high. The previous record was set on July 9. The social media operator was fined £500,000 yesterday by the United Kingdom's Information Commissioner’s Office for its conduct in the Cambridge Analytica data breach, which cleared a small part of the fallout from the global scandal.

In other news, Facebook has revealed it would give Social Science One, an academic organization, full access to personal information about 2.2 billion users. The move is apparently aimed at studying its influence on elections and democracy, in an initiative to boost transparency and also fight abuses. Of note, Mark Zuckerberg's technology empire unveiled augmented reality tools for advertising and other features on July 10.

Disclaimer: 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 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.