Amazon HQ2 problems | Calamatta Cuschieri

European markets closed higher on Friday as US-China trade talks optimism grew.  The STOXX 600 earned 1.42% with basic resources and autos leading the index. Benoit Coeure, an ECB board member announced that the ECB is discussing a new round of loans to Eurozone banks and that the recent economic slowdown in Europe is higher than the board expected which led the Euro lower against the Dollar. Germany’s Scout24 was a top gainer on Friday after Hellman & Friedman made an offer to buy €5.7 billion. The stock closed up 11%.

US stocks similarly closed higher on the back of US-Chain trade talks. The S&P 500 rose 1.1% to close at 2,775 and the Dow Jones closed 443 points higher. On a company basis the biggest news was Newell Brands that lost 21% following their announcement that the loss of Babies R Us is hurting their sales. On the fixed income side bond prices fell as the 10-year Treasury rose 2.67%.

The MSE total return Index ended the week down as it closed 0.43% off the open. Simmonds Farsons Cisk plc was the largest and only gainer for the day as it closed 4.38% higher while Bank of Valletta plc, International Hotel Investments plc, Plaza Centers plc and RS2 software plc closed in the red. The other equities closed unchanged.

Amazon’s HQ2 problems

Amazon announced the cancellation of its New York second Head Quarters following huge opposition from local politicians and the community at large. While top politicians like Cuomo and de Blasio hailed this as a Triumph for New York, advocacy groups and elected officials pushed back siting the huge tax cuts the city offered Amazon as the reason for opposition.

The news seemed to move the stock upward however not in a significant way.

Trump’s National Emergency

Donald Trump has finally declared the long touted National Emergency with regards to the US immigration on its southern border. The news did not seem to move the market in any significant way however analysts are wary of the political and constitutional crisis that this might ensue following such a declaration.

The funds to build the wall will be deducted from the already approved military projects which will likely cause an uproar from the congressmen and senators whose constituent it will affect. It is yet to be seen in what way the opponents to the project will react and how this will affect the markets.

This article was issued by Aaron Saliba, 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.