Markets Summary and trade negotiations | Calamatta Cuschieri

Maltese markets erased their previous gain and closed lower on Monday, with the MSE Equity Total Return Index moving down 0.078% to 9,754.57. The best performer was Tigne Mall P.l.c which jumped 3.03%, coming to a close of €0.89, followed closely by Plaza Centres P.l.c’s 3.03% gain, and closing at €1.02. Meanwhile, Trident Estates P.l.c experienced a downfall of 1.04%, seeing it close at €1.90.

US markets experienced gains after Trump announced that US and China are ‘getting back to the table’ for more meaningful conversations. The Dow Jones Industrial Average jumped 1.05%, or 269.93 points, with Apple shares leading the index’s intraday rally. The S&P500 ended 1.10% or, 31.27 points, higher, as did the Nasdaq Composite Index which rose by 1.32%, or 101.97 points.  

European markets are slowly steadying, following calmer trade tensions and hopes for a new Italian Government. However, the pan-European STOXX600 weakened by 0.02% or, 0.08 points, whilst the London FTSE100 index closed 0.47% or, 33.20 points lower.

US and China Trade Negotiations

Following the G-7 discussions taking place in Biarritz, France, President Donald Trump announced that a trade deal with China might be on the horizon after he praised Beijing for their positive gestures and remarked President Xi Jinping as a brilliant leader. Trump claimed that this time, China was ‘sincere about wanting to reach a deal’ through peaceful and civilized negotiations.

Following the news, investors’ worries of a global recession have eased. Trump is feeling more ready to reach an agreement with China this time and also downplayed any predictions of additional tariffs on vehicles imported from Japan. The latest statements contradict Trump’s previous declarations which fueled global uncertainties, but he simply stated that it is his way of negotiation; ‘’ It’s done well for me over the years, and it’s doing even better for the country, I think’’.

The optimistic news reflected positively on markets all over the world, sending US stocks to start experiencing positive gains once again, after falling to their lowest in two and a half years. Trump also added that Washington could be in agreement with Brussels about tariffs on European imported cars.  More updates are set to come out in the following days.

This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, https://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.