The Malta Independent 22 September 2020, Tuesday

Markets drop on mixed data

Friday, 17 July 2020, 11:23 Last update: about 3 months ago

Oil and stocks fall as COVID-19 cases hit record

US markets were dragged lower by a decline in technology stocks as investors chewed on a mixed earnings report and economic data after a drop in Asian markets. The Dow Jones Industrial Average recovered from the session lows but still closed down 135.39 points, or 0.5 percent, at 26,734.71, with the S&P 500 losing 10.99 points, or 0.3 percent, to 3,215.57. The Nasdaq Composite fell 76.66 points, or 0.7 percent, to end the session at 10,473.83.

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European markets also closed lower but bounced up from the session lows European Central Bank chief Christine Lagarde kept fiscal policy steady and said the bank expected a pending European Union stimulus scheme to favour grants over loans. The pan-European STOXX 600 lost 0.7% with Germany's DAX and France's CAC 40 both ending nearly 0.4% lower.

Maltese markets slipped marginally lower with the MSE Equity Total Return Index losing 0.055 percent to 8,146.74 points. Malta Properties Company Plc led the losses with shares down 1.72 percent at €0.57, followed by PG Plc which lost 1.03 percent to €1.93. Medserv Plc was the only company to post a gain with shares up 3.7 percent at €0.70.

Oil drops on withdrawal of production cuts

Oil prices fell 1% on Thursday after OPEC+ agreed to ease record supply curbs and as new infections of the novel coronavirus continued to surge in the United States. Benchmarks Brent crude fell 42 cents or 1% to $43.37 and US West Texas fell 45 cents or 1.1% to $40.75. Both benchmarks have remained above $40 a barrel for the last several weeks however fears of a second wave of cases of COVID-19, led by the United States, are keeping the rally in check.

International Energy Agency Executive Director Fatih Birol said on Wednesday that global oil markets are rebalancing, with prices of about $40 per barrel expected in coming months. OPEC+ agreed on Wednesday to scale back oil production cuts from August, reducing cuts by 2 million barrels per day to 7.7 million bpd through December.

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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