< Back to Trader Blog Articles

US leads over Europe

  • Junior Trader
  • Blog post submitted on 12th September 2018
06744 CC Trader Talk V2

U.S. stocks recovered from a wobbly start to end the session higher Tuesday, with the Dow climbing by triple digits, as energy and telecommunications rallied. However, trade worries were simmering below the surface as investors continued to watch the situation between the U.S. and China. The Dow Jones Industrial Average gained 113.99 points, or 0.4%, to end at 25,971.06 with the S&P 500 adding 10.76 points, or 0.4%, to finish at 2,887.89. The Nasdaq Composite Index advanced 48.31 points, or 0.6%, to close at 7,972.47.

European markets however ended slightly lower after a report that China plans to seek permission from the World Trade Organization to impose sanctions on the U.S. increased concerns about the global trade picture. The Stoxx Europe 600 fell 0.1% to end at 375.31 with Germany’s DAX 30 ending 0.1% lower at 11,970.27 after paring earlier losses. The U.K.’s FTSE 100 also slipped 0.1% to end at 7,273.54.

Alibaba’s Russian venture

China’s largest e-commerce firm, Alibaba Group Holding Ltd has joined forces with a state fund and two technology firms in Russia, hoping that access to their client base of more than 100 million people will boost its development. The three Russian entities will have a combined 52 percent stake in the e-commerce platform after contributing cash, shares and other assets.

Alibaba will own 48 percent of AliExpress Russia as a result of a deal signed with Russian Direct Investment Fund, mobile operator Megafon and internet group Mail.ru during Russia’s Eastern Economic Forum on Tuesday. E-commerce has grown rapidly in Russia in recent years, spurred by improved internet access, with turnover exceeding $14 billion last year, one third of which were cross-border deals, according to Russia’s Association of Internet Trade Companies.

Brexit Summit scheduled for November

The U.K. and the European Union are preparing for a special summit to sign the Brexit deal in November and the meeting could be announced within days, according to people familiar with the matter. European Commission President Jean-Claude Juncker said Wednesday he welcomed UK Prime Minister Theresa May’s Brexit proposal and would work “day and night” toward reaching a deal with the U.K., though he ruled out her plan to stay in the bloc’s single market for goods while going it alone in services.

May will present her case to her EU counterparts at an informal meeting in Salzburg next Wednesday, before the other 27 leaders discuss how to respond among themselves. The plan for a special Brexit deal summit is likely to be unveiled during the course of the Salzburg gathering, two people said, with one suggesting the announcement could come even sooner.

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.