The Malta Independent 24 September 2020, Thursday

Global markets recover from three-day slump

Thursday, 10 September 2020, 12:24 Last update: about 14 days ago

Stock markets post strong recoveries, Boeing warns production delays and offshore oil storage hits the spotlight again

US markets posted sharp gains on Wednesday, reversing a three-day selloff that saw the Nasdaq Composite Index flirting with correction territory. The Dow Jones Industrial Average gained 439.58 points, or 1.6 percent, to 27,940.47, with the S&P 500 rising 67.12 points, or 2 percent, to 3,398.96. The Nasdaq Composite surged 293.87 points, 2.7 percent, to end the session at 11,141.56.

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European stocks also bounced back from previous losses with AstraZeneca reversing declines after a report that it may resume its COVID-19 vaccine trial next week. The pan-European Stoxx 600 index advanced 1.6 percent with the telecom, insurance and technology sectors leading advances. Investors are looking to Thursday’s European Central Bank policy meeting as a possible catalyst for markets.

Maltese markets meanwhile nudged lower with the MSE Equity Total Return Index slipping 0.06 percent to 7,517.986 points. Loqus Holdings Plc led the losses with shares down 32.99 percent at €0.065 on a single trade of 324,000 shares. Bank of Valletta Plc meanwhile posted the largest gain with shares up 1.12 percent at €0.90.

Boeing faces new delays for 787 Dreamliner

Boeing Co warned of delays in deliveries of its 787 Dreamliner on Tuesday, as three separate production flaws over the past year hamper efforts to develop an alternative revenue stream to its grounded 737 MAX. The Federal Aviation Administration (FAA) said on Tuesday that it “is investigating manufacturing flaws affecting certain Boeing 787 jetliners. The agency continues to engage with Boeing.

In the latest issue, Boeing learned during fabrication of the 787 horizontal stabiliser that some components were clamped with greater force than specified, which would result in improper gap verification and shimming. Boeing identified the problem in February and announced it on Tuesday.

Oil traders look for places to store their oil

A stalled global economic recovery from the coronavirus pandemic is leading to a fresh build-up of global oil supplies, pushing traders to store millions of barrels of crude oil and refined fuels at sea again. The inventory build-up comes despite major oil producers including Saudi Arabia and Russia sharply cutting back output and refineries slowing operations in recent months in response to an unprecedented drop in consumption.

The use of so-called floating storage onboard tankers comes as traditional onshore storage remains close to capacity as supply outpaces demand. Trading house Trafigura has chartered at least five of the largest tankers each capable of storing 2 million barrels of oil. A number of the vessels are newly-built and are due to store unusually high unsold volumes of gasoil and diesel after a modest recovery mid-summer.

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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