Both the S&P 500 and the Nasdaq finished lower for a third session on Thursday, following concerns about contagion from struggling emerging economies as well as unresolved trade tension. Technology stocks impacted the US market, while energy shares fell on weak crude prices. The S&P 500 index shed 0.4 percent to 2,878.05; the Nasdaq slid 0.9 percent to 7,922.73; and the Dow Jones Industrial Average offset earlier losses to rise to 25,995.87.
European shares dropped to their lowest level in five months on Thursday as worries over trade persist and tech stocks came under pressure. In a volatile session, the Stoxx 600 alternated in and out of positive and negative territory; the pan-European benchmark ended 0.6 percent lower. Europe’s benchmark was set to end the week with a 2.3 percent loss as a result of the ongoing trade dispute and the weakness in emerging markets having impacted investors’ appetite for risk.
HNA to exit Deutsche Bank stake
Chinese conglomerate HNA, an owner of airlines and hotels that amassed more than $40 billion worth of business and stakes in companies in 2015 through 2017, aims to completely exit its stake in German lender Deutsche Bank. The firm plans to unload the majority of overseas investments made in recent years in order to shrink its balance sheet, under new pressure from Chinese regulators and its creditors.
HNA currently holds a 7.6 percent share of the German Bank; the firm aims to gradually dispose of this stake over the next 18 months. Deutsche Bank shares fell as the news surfaced. In morning trading in Frankfurt, the shares went down more than 1 percent, then recovered partially and remained down around 0.6 percent.
EU clears Apple’s purchase of Shazam
The European Union approved Apples plans to take over British music discovery app Shazam, after EU antitrust investigation showed “it would not harm competition in the bloc”. The deal was officially announced in December 2017, and it will help Apple become a tougher competitor to Spotify, which is currently the industry leader in music streaming services.
Shazam is an application which identifies songs when a smartphone is directed at an audio source. A full-scale investigation was carried out by the European Commission, which studied thoroughly the deal and Shazam’s user and music data. Results showed that Apple’s acquisition of the firm would not reduce or damage competition in the digital music streaming market.
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.