< Back to Trader Blog Articles

European markets lead the way

  • Junior Trader
  • Blog post submitted on 13th March 2018
06744 CC Trader Talk V2

US markets finished mostly lower Monday, weighed down by the industrials sector, while the Nasdaq closed at a record, in part due to optimism over Friday’s jobs data, which showed solid economic growth without triggering wage pressure. The Dow Jones Industrial Average fell 157.13 points, or 0.6%, to 25,178.61 while the technology-laden Nasdaq Composite Index, was up 27.51 points, or 0.4%, to 7,588.32, after hitting an intraday high of 7,609.10.

European stocks finished mostly higher Monday as markets in the region tried to shake off concerns surrounding tariffs and focus on the positive trading seen in individual stocks. U.K. markets finished with losses Monday, snapping a five-session win streak with mining shares proving a drag on the London blue-chip index, as the industry wrestles with the prospect of U.S. tariffs on steel and aluminum.

Strong performance by Tesla

Tesla Inc. shares gained the most since early January and traded as high as 4.8%, their largest intraday percentage increase since January 8 making them the second best performer on the Nasdaq on Monday. The pop put Tesla on track for their highest close since February 28, when it closed at $343.06, and snapped a two-day losing streak for the stock.

The company is fresh from getting a nod from analysts who on Friday wrote they believed the Silicon Valley company would overcome production bottlenecks and ramp Model 3 production throughout 2018. Tesla confirmed an earlier report that they had temporarily stopped Model 3 production in February and said the downtime had been planned, adding that such periods are used to improve automation and address bottlenecks to increase production rates eventually.

Trump blocks Broadcom – Qualcomm takeover

President Donald Trump issued an executive order Monday blocking Broadcom Ltd. from pursuing its hostile takeover of Qualcomm Inc., scuttling a $117 billion deal that had been scrutinized by a secretive panel over the tie-up’s threat to U.S. national security. The U.S. Treasury Department has previously told the Singapore-based firm that it has confirmed national security concerns about the chipmaker’s unsolicited bid to buy rival Qualcomm Inc and accused it of violating an order to give sufficient notice of plans to move to the United States.

"There is credible evidence that leads me to believe that Broadcom Ltd.," by acquiring Qualcomm, "might take action that threatens to impair the national security of the United States," Trump said in the order released Monday evening in Washington. Broadcom said in a statement it was reviewing the order and that it "strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns." Qualcomm didn’t respond to requests for comment.

The Calamatta Cuschieri Traders Blog is available daily on CC WebTrader. Other market coverage including coverage of the International Bond Markets is also available.

The information provided on this website is 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. Similarly any views or opinions expressed on this website are not intended and should not be construed as being investment, tax or legal advice or recommendations. Investment advice should always be based on the particular circumstances of the person to whom it is directed, which circumstances have not been taken into consideration by the persons expressing the views or opinions appearing on this website. Calamatta Cuschieri & Co. Ltd. (CC) has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. You should always take professional investment advice in connection with, or independently research and verify, any information that you find or views or opinions which you read on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. CC does not accept liability for losses suffered by persons as a result of information, views or opinions appearing on this website.
This website is owned and operated by Calamatta Cuschieri & Co. Ltd (Co. Reg. No. C13729) of 5th Floor, Valletta Buildings, South Street, Valletta VLT 1103, Malta. CC is licensed to conduct Investment Services in Malta by the Malta Financial Services Authority.