Markets roundup | Calamatta Cuschieri

Europe ends higher

European markets closed in the green after the summit between United States President Donald Trump and Russian President Vladimir Putin finished. Trump and Putin addressed the issues of cooperation in international security and humanitarian issues including the European gas pipeline deal with Moscow. They both reaffirmed that Russia did not interfere in the 2016 US presidential elections after which president Trump was called out by both major parties in the US.

The FTSE 100 ended the trading session 0.43% in the green, while the CAC 40 climbed 0.24% at the closing bell. The DAX finished 0.90% higher. The best performer was Thyssenkrup AG. closing 9.13% higher.

Precious metals on the hot seat

Precious metals traded lower as Federal Reserve Chair Jerome Powell testified before the United States Congress on monetary policy, with silver suffering the biggest losses and reaching December 2017 lows. Powell pointed out that the Fed is prepared to increase interest rates gradually to ensure economic expansion. He also commented on trade tariffs, noting that open trade is a positive thing. Meanwhile, the US dollar increased compared to the euro.

Boeing forecasts $15T market opportunity

Boeing forecast a $15 trillion market opportunity in the next 20 years, the company said in its commercial airplanes and services report. According to the forecast, the demand for new airplanes will outgrow 42,700 aircraft, valued at approximately $6.3 trillion. The services demand is expected to grow 4.2% annually and create an $8.8 trillion market.

"For the first time in years, we are seeing economies growing in every region of the world. This synchronized growth is providing more stimulus for global air travel. We are seeing strong traffic trends not only in the emerging markets of China and India, but also in the mature markets of Europe and North America," Boeing's vice president of Commercial Marketing Randy Tinseth stated.

On the other hand, Boeing's biggest competitor Airbus also published its Global Market Forecast earlier this month indicating demand growth of 4.4% annually, or nearly 38,000 aircraft worth $5.8 trillion in the next 20 years.

IBM goes Crypto

International Business Machines Corp. (IBM) said that it struck a partnership with Stronghold, a financial technology start-up, to jointly launch a new cryptocurrency called Stronghold USD.

The cryptocurrency will be a so-called "stable coin," which means it will be supported by a government-backed currency, in this case, the US dollar. The digital currency will launch on the Stellar Blockchain platform and will be backed one-for-one with US dollars at Prime Trust, a Nevada-based company that will deposit the cash at banks insured by the Federal Deposit Insurance Corp. 

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.