< Back to Trader Blog Articles

Markets close lower

  • Junior Trader
  • Blog post submitted on 6th December 2017
06744 CC Trader Talk V2

U.S. stock-market indexes closed lower Tuesday, driven by losses in utilities, telecoms and industrials sectors. An earlier rebound in the technology sector fizzled out, sending the Nasdaq Composite into negative territory, reversing solid gains in the morning. Analysts were not surprised by the pause in growth of even a potential pullback after the stellar performances of global indexes throughout the year.

European shares followed their Asian counterparts lower as investors continued to lock in gains in the year’s better performing assets amid a broad risk-off mood. The dollar steadied and Treasuries climbed as focus turns to efforts to avert a U.S. government shutdown on Saturday. The Stoxx Europe 600 Index dropped a second day as technology and basic resource shares led the decline. In Asia, Japanese equities fell sharply as the yen rose, and Hong Kong’s Hang Seng Index slumped.

Steinhoff International share crash

Owner of British retailer Poundland, Steinhoff International has seen its shares fall 60% after it said it would launc ha probe into accounting irregularities. Its South African shares hit a seven-year low of 17.56 rand (97p) on the Johannesburg securities exchange. Shares in the firm, which owns 40 local brands in more than 30 countries, later recovered to 22 rand, still down 52%.

The moves came as chief executive Markus Jooste resigned and the South African group postponed its full-year results. Its brands include Bensons for Beds and Harveys in the UK, Conforama in Europe, Pep and Ackermans in South Africa and Snooze in Australia. Steinhoff derives about 60% of its earnings in Europe and 34% in Africa. As well as furniture and homeware, it also sells products including clothing, footwear and consumer goods.

Ford to join forces with Alibaba

Ford Motor Co is expected to sign as early as Thursday a deal with Alibaba Group Holding Ltd which may allow the U.S. automaker to test selling cars to consumers in China through Alibaba’s online retail arm Tmall, as well as via a new “auto vending machine” store concept, according to a Ford source familiar with the matter.

Representatives of Ford and Alibaba, including Ford Executive Chairman Bill Ford Jr. and Ford CEO Jim Hackett, are expected to be in Hangzhou on Thursday to sign a letter of intent that outlines the scope of the new partnership. The partnership would be part of Ford’s effort to overhaul its China strategy to revive the growth momentum it has lost in recent months.

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

Important(Notices)
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.