U.S. stocks closed lower Monday with corporate results in the spotlight as fourth-quarter earnings season got under way. The Dow Jones Industrial Average slid 86.11 points, or 0.4%, to end at 23,909.84, while the S&P 500 index fell 13.65 points, or 0.5%, to 2,582.61. The Nasdaq Composite Index dropped 65.56 points, or 0.9%, to close at 6,905.92.
European markets also closed lower, tracking losses for global equities as weak Chinese data triggered global economic concerns. The Stoxx Europe 600 lost 0.9% to 346.20, after finishing up 1.7% for the week on Friday and the German DAX 30 slipped 0.6% to 10,826.20. France's CAC 40 dropped 0.7% to 4,749.16, the U.K.'s FTSE 100 fell 0.8% to 6,861.70.
Newmont - Goldcorp acquisition
Newmont Mining Corp said on Monday it would buy smaller rival Goldcorp Inc for $10 billion, creating the world's biggest gold producer in the face of dwindling easy-to-find reserves of the precious metal. "Combining forces will give us the sector's best project pipeline and exploration portfolio," Newmont Chief Executive Gary Goldberg said on a conference call with analysts. "These prospects translate to the gold sector's largest reserve and resource base."
The new company, to be called Newmont Goldcorp, is set to overtake current leader Barrick Gold's annual production and will have mines in the Americas, Australia and Ghana. The new company is expected to produce 6-7 million ounces of gold annually over the next 10 years and beyond versus Barrick's 2018 forecast of between 4.5 million and 5 million ounces. Newmont will offer 0.3280 of its share and $0.02 for each Goldcorp share. Based on Newmont's Friday close; that translates to $11.46 per share, a premium of about 18 percent to Goldcorp's Friday close on the New York Stock Exchange.
Volkswagen to build EV in USA
Volkswagen AG said on Monday that it was investing $800 million to build a new electric vehicle at its plant in Chattanooga, Tennessee, and scheduled a briefing with Ford Motor Co for Tuesday on their efforts to forge a global alliance. Volkswagen Chief Executive Herbert Diess said the company was considering building luxury Audi vehicles in the United States but that no decisions had been made. The Tennessee investment "is a signal to the government that we are really committed to the United States," Diess told reporters at the auto show.
German automakers have been under pressure from U.S. President Donald Trump to increase their investments in the United States. Diess and counterparts from German automakers BMW AG and Daimler AG met with Trump at the White House in December to urge the administration not to go through with a threat to slap tariffs on European cars.
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.