The Malta Independent 22 October 2020, Thursday

Markets end week higher

Monday, 12 October 2020, 11:27 Last update: about 9 days ago

Global markets post strong close to week and London Stock Exchange sells its Italian arm to Euronext

US markets climbed on Friday, marking their best week since August even as progress stalled on stimulus talks with investors remaining optimistic that a package will eventually be passed by Congress. The Dow on Thursday gained 122.05 points, or 0.4 percent, to 28,425.51, with the S&P 500 rising 27.38 points, or 0.8 percent, to 3,446.83. The Nasdaq Composite added 56.38 points, or 0.5 percent, to end the session at 11,420.98.

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European stocks also posted a strong end to the week, as Denmark’s Pandora and Novo Nordisk set a brighter tone for the earnings season and a rebound in travel and bank stocks lifted the region’s bourses. The pan-European Stoxx 600 index gained 0.6 percent.

Maltese markets meanwhile ended the week lower, with the MSE Equity Total Return Index closing down 0.77 percent at 7,140.962 points. Bank of Valletta Plc led the losses with shares down 2.06 percent at €0.854, followed by HSBC Bank Malta Plc which dropped 1.97 percent to €0.745.

LSE sells Borsa Italiana to Euronext

Euronext is to buy Borsa Italiana from London Stock Exchange for 4.3 billion euros (£3.9 billion) in cash, the companies said on Friday, in a major expansion of the French operator's network of European trading platforms. The deal could bring LSE a step closer to winning approval for its $27 billion purchase of data provider Refinitiv, which is 45% owned by Thomson Reuters. The London Stock Exchange Group put Borsa Italiana for sale to alleviate the European Commission's concerns about its control over the European bond market.

London Stock Exchange Group entered exclusive talks with Euronext last month after the Paris bourse owner saw off competition from Deutsche Boerse and Swiss rival SIX. While LSE said it would have preferred to keep its Italian arm, it will bank a significant profit on the 1.6 billion euros it paid in 2007 when buying Borsa. Borsa’s bond trading platform MTS will give Euronext its first foray into fixed income trading.

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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