Markets advance on earnings | Calamatta Cuschieri

U.S. markets rose on Tuesday, on the back of a wave of better than expected corporate earnings. The Dow Jones Industrial Average climbed 135 points, or 0.5%, to 26,520 with the S&P 500 gaining 0.3% to 2,914. The Nasdaq Composite advanced 0.3% to end the session at 8,002 with all three indexes inching closer towards last year’s all-time highs.

European markets also closed higher with a strong performance from the retail sector and advanced trade talks between the US and China boosting investor confidence. The pan-European STOXX 600 rose 0.3 percent with most of the region’s indexes in positive territory. Germany’s DAX led the gains, helped by a 10% jump from online-retailer, Zalando.

Maltese markets meanwhile reversed earlier gains with the MSE Equity Total Return Index losing 0.218% to close the session at 9,347.921. Bank of Valletta gave the strongest performance with shares gaining 3.08% to €1.34. Malta Properties Company Plc led the losses with shares losing 4.92% to €0.58 whilst Lombard Bank Malta Plc retreated 2.56% to close down at €2.28.

Qualcomm wins Apple settlement

Shares of Qualcomm jumped 23 percent in regular trading, their biggest gain in more than 19 years after the chipmaker won a major victory in its wide-ranging legal dispute with Apple Inc on Tuesday as the companies reached a surprise settlement that called for the iPhone to once again use Qualcomm modem chips.

The settlement followed two years of increasingly bitter legal battles between the two companies and came as opening arguments took place at a trial in federal court in San Diego. The Qualcomm settlement also incorporates a six-year patent license and a payment from Apple to Qualcomm, but the companies did not disclose the amount. Qualcomm shares closed the session at $70.45 but then hit $75.25 in after-hours trading.

EU tariffs on US goods

The EU has proposed tariffs on $20 billion of US goods in a long-running dispute over Boeing aircraft subsidies. The proposed tariffs cover a range of products from aircraft to chemicals and food products including frozen fish, citrus fruit, and ketchup.

The proposal comes after the WTO said earlier this month that the US had failed to remove some Boeing subsidies. EU Trade Commissioner Cecilia Malmström said: "European companies must be able to compete on fair and equal terms. "The recent WTO ruling on US subsidies for Boeing is important in this respect. We must continue to defend a level-playing field for our industry."
 

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.