The Malta Independent 23 July 2019, Tuesday

Markets down on Iran sanctions

Tuesday, 25 June 2019, 10:44 Last update: about 27 days ago

Global markets retreat, US imposes sanctions on Iran’s leaders, and Nissan reminds on strained relationship with Renault

US markets started the week mostly lower on Monday as President Donald Trump signed an executive order sanctioning Iran's leaders. The Dow Jones Industrial Average edging up 9 points, or less than 0.1 percent, to around 26,728 whilst the S&P 500 retreated 0.2 percent to finish around 2,945. The Nasdaq Composite also slipped 0.3 percent to end the session around 8,006.

European markets also moved lower as weaker German economic data and a profit warning from Daimler weighed on the region's bourses. The pan-European STOXX 600 index closed down 0.25 percent whilst Germany's DAX shed 0.5 percent whilst the UK's FTSE 100 gained 0.1 percent on the back of healthcare shares.

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Maltese markets also ended lower with the MSE Equity Total Return Index closing down 0.091 percent at 9,866.418 points. International Hotel Investments Plc led the losses with shares closing down 1.11% at €0.89. RS2 Software Plc mean surged 2.07 percent to end at €1.48.

 

US sanctions Iranian leaders

President Donald Trump on Monday put sanctions on Iran's supreme leader, Ayatollah Ali Khamenei, and eight senior military commanders, that deny him and his office access to financial resources. Treasury Secretary Steven Mnuchin also said financial restrictions would be imposed on Iran's Foreign Minister Javad Zarif later this week.

The U.S. already has sanctioned more than 80% of Iran's economy, according to Secretary of State Michael Pompeo. Iran said the path to a diplomatic solution with the U.S. had closed after the Trump administration imposed sanctions against its supreme leader and other top officials, ramping up tensions further in the Middle East.

 

Strain on the Nissan-Renault relationship

Nissan Motor Co diminished hopes for a quick fix to its strained relations with France's Renault SA, saying inequality between the partners could unravel their two-decade-old auto-making alliance. Speaking at Nissan's annual general meeting in Yokohama, its first since the dramatic ouster of former chairman Carlos Ghosn last year, Chief Executive Hiroto Saikawa said he wanted to preserve the spirit of equality in the alliance.

"We want a win-win relationship with Renault. The alliance has been successful until now because we have respected each others' independence," Saikawa said. "If necessary, we will put our capital structure on the table. If the relationship becomes a win-lose one, the relationship will break up very quickly."


This article was issued by Peter Petrov, 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.

 


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