US markets erased their early gains and closed sharply lower on Tuesday as investors kept a close eye on renewed tensions between the United States and China. The Dow Jones Industrial Average lost 457.21 points, or 1.89 percent, to 23764.78 while the S&P 500 fell 60.20 points, or 2.05 percent, to 2870.12. The Nasdaq Composite index sank 189.79 points, or 2.06 percent, to end the session at 9002.55.
European markets meanwhile closed higher before the late-session sell-off took hold across the Atlantic as investors looked at new data that showed the worldwide new virus growth rate of Covid-19 slowed down from 2.9 percent to 1.8 percent. The pan-European Stoxx 600 index gained 0.3 percent as the telecom and healthcare sectors lifted the benchmark. The UK's FTSE 100 index climbed 0.9 percent on the back of strong gains in Vodafone.
Maltese markets slipped and the MSE Equity Total Return Index closed down 0.084 percent at 8,301.507 points. Only five stocks posted changes with the largest drop seen from RS2 Software Plc, down 1.5 percent at €1.97. Malta International Aiport Plc meanwhile recorded the largest gain with shares up 1.25 percent at €4.86.
Tesla looks at moving to Texas
Tesla Inc is considering a potential move of the company's electric vehicle assembly plant from the current location in California to Texas as the state's Governor Greg Abbott said on Tuesday that he spoke with Elon Musk, the chief executive of Tesla Inc. The remarks come just days after Musk threatened to move Tesla's headquarters and future operations after officials in California said the carmaker's only US plant could not reopen due to coronavirus lockdown measures that remain in place.
"I've had the opportunity to talk to Elon Musk and he's genuinely interested in Texas and genuinely frustrated with California," Abbot said. "We've just got to wait and see how things play out." President Donald Trump also weighed in on Tuesday, tweeting that California should let Tesla get back to work and reopen production at their assembly plant.
In addition to its vehicle plant in California, Tesla has a battery plant in Sparks, Nevada, and a factory in Buffalo, New York, that produces solar panels and other energy generation and storage products.
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.