European markets closed mixed on Tuesday as investors continued to focus on trade tensions prompted by United States' decision to impose tariffs on aluminium and steel imports from the European Union, Mexico and Canada. The EU soon responded by announcing countermeasures and warned the bloc will not enter negotiations with the US as a result of the decision. Market watchers also digested economic data, including services PMI figures from the EU, Germany and the UK, as well as euro area retail sales.
The FTSE 100 fell 0.70%. Carnival and Royal Bank of Scotland pulled the index down as they plunged 6.12% and 5.16%, respectively.The DAX added 0.13%. Infineon led the gains as its stock jumped 2.70%. Meanwhile, France's CAC 40 closed flat.
On Wall Street, US Stocks continue on their positive track after yesterday’s close with NASDAQ hitting a record high of 7,143.57 points. There was a contribution from Apples Inc. Shares which saw its shares reach an all-time high of $193.42 after it unveiled iOS 12.
Fox’s Sky takeover bid approved
United Kingdom Culture Minister Matt Hancock told the Parliament that he has approved 21st Century Fox's bid to buy Sky on condition Sky News is sold. Hancock also noted he will not refer Comcast's proposed merger with Sky to competition authorities, noting it doesn't raise concerns.
In April, Fox vowed to sell Sky News to Walt Disney following Fox's purchase of the 39% stake in Sky it does not already own in an effort to get UK regulator's approval for the proposed takeover. However, Sky said it is withdrawing its recommendation to shareholders to accept Fox’s acquisition bid after Comcast offered to buy Sky for £12.5 per share in cash.
Meanwhile, Comcast is reportedly also planning to compete with Disney to acquire Fox and is preparing an all-cash offer.
Trade wars
China has offered to buy products worth almost $70 billion from the United States if Washington agrees to give up on imposing tariffs on Chinese imports. Chinese officials held trade talks with US Commerce Secretary Wilbur Ross over the weekend and proposed that Chinese firms buy farm and energy products, including soybeans, corn, natural gas, crude oil and coal, from the US. However, China's top negotiator Liu He warned Beijing will withdraw the offer in case the US pursues its plan to target Chinese imports worth $50 billion with tariffs.
Earlier in the day, the White House announced it will reveal a final list of Chinese goods which will be subject to 25% tariffs by June 15 and noted the US plans to step up its investment restrictions and enhanced export controls on Beijing by June 30.
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.