The Malta Independent 18 September 2019, Wednesday

Markets summary and a silver lining in the US markets’ sell off

Thursday, 8 August 2019, 10:49 Last update: about 2 months ago

Maltese markets closed in the green on Wednesday with the MSE Equity Total Return Index improving by 0.383% to 9,878.74 points. Malta International Airport recovered its lost percentage through a 3.33% gain and closing at €7.75. MIDI p.l.c. followed closely with a 2.14% gain to close at €7.75. Meanwhile, Malta Properties Company plc lost 4.32% to close at €0.66.

The US stocks experienced modest gains, with the three main equities benchmarks recovering from losses of at least 1%. The Dow Jones finished 22.45 points lower to end at 26,007.07, while the S&P 500 jumped 2.21 points to finish the session at 2,883.98. The Nasdaq Composite Index gained 29.56 points, or 0.4% to 7,862.83.

European shares turned higher on Wednesday, breaking a three-day losing streak over a multi-billion dollar German chemical. The pan-European stocks benchmark STOXX 600 index closed 0.2% higher following a gain as high as 1% during the session when Bayer and Lanxess’ sale deal on chemical park operator Currenta left a positive effect on stocks. The London’s FTSE 100 index experienced a few big moves on Wednesday, climbing up to 23.06, or .032% to close at 7,194.75. This represented the first rise for the blue-chip index this week.

A Silver Lining in the US market sell-off

New York U.S companies posting strong earnings are still very popular amongst investors, despite the broad stock sell-off witnessed last week. Leading stocks like Chipotle Mexican Grill, Starbucks Corp and semiconductor equipment maker KLA Corp all experienced a minimum gain of 8%, after posting strong earnings and forecasts. However, the S&P500 shed 2.3% since the start of the quarter due to investors’ uncertainty about the global economy’s strength as a result of the fears of a currency war between China and the US.

Despite the undesirable performance of the S&P 500, portfolio managers and strategists stated that companies having strong fundamentals are still being rewarded by the market.

Overall, companies are surviving the market sell-off in proportion to their corporate results. Jim Paulsen, Chief Investment Strategist at the Leuthold Group stated that ‘’the underlying reality is that the fundamentals of the U.S. economy remain remarkably okay and earnings continue to outpace people’s worst fears.”

 

This article was issued by Nadiia Grech, 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.

 

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