< Back to Trader Blog Articles

Mixed markets in thin trading

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

U.S. markets closed mostly higher Tuesday as investors shifted their attention away from a landmark meeting between President Donald Trump and Kim Jong Un to the start of a series of important central-bank meetings, kicking off with the Federal Reserve. The Dow Jones Industrial Average switched between small gains and losses, but failed to snag a fifth straight day of gains after closing fractionally lower at 25,320.73.

European stocks meanwhile finished slightly lower with oil-and-gas companies and the basic-materials sector lead declines. The broader Stoxx Europe 600 Index ended 0.1% lower at 387.53, after rising as much as 0.4% early in the session. After the utilities sector contributed to a higher open, the FTSE 100 index began to retreat in early moves and finished down by 0.4% at 7,703.81.

US-North Korea Summit

US president Donald Trump and North Korean leader Kim Jong Un signed a document Tuesday asserting that the U.S. president would provide unspecified “security guarantees” to Kim in exchange for the North Korean leader’s “unwavering commitment to complete denuclearization of the Korean peninsula.” In four bullet points, they laid out goals of future rounds of negotiations without specifying what immediate steps either side would take. Trump said there would be “many meetings” between the two men.

Trump and Kim noted the symbolism of the moment in their document, calling it an “epochal event of great significance in overcoming decades of tensions and hostilities” between the countries. The two leaders signed copies of the document, in Korean and English, at a signing ceremony to conclude their summit in Singapore — the first ever meeting of the North Korean and U.S. heads of state.

ZTE falls in resumed trading

Investors wiped about $3 billion off embattled Chinese telecommunications giant ZTE Corp’s market value as it resumed trade on Wednesday after agreeing to pay up to $1.4 billion in penalties to the U.S. government. The Hong Kong-listed shares of ZTE slid as much as 41 percent to HK$14.98, their lowest in a year, following a two-month trading suspension. Its Shenzhen shares fell by their 10 percent limit to 28.18 yuan after it confirmed details of the agreement publicized by the U.S. government on Monday.

China’s No. 2 telecommunications equipment maker was crippled when the United States imposed a seven-year supplier ban on the company in April after it broke an agreement to discipline executives who conspired to evade U.S. sanctions on Iran and North Korea. The ban, which has prevented ZTE from buying the U.S. components it relies on to make smartphones and other devices, will not be lifted until ZTE pays a fine and places $400 million more in an escrow account in a U.S.-approved bank. It was also ordered to radically overhaul its management.

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.