US markets continued their retreat on Wednesday as data showing slower job creation added to concerns about slowing economic growth. The Dow Jones Industrial Average index lost 494.42 points, or 1.86 percent, to 26,078 while the S&P 500 index sank 52.64 points, or 1.79 percent, to 2,8871.61. The Nasdaq Composite Index dropped 123.44 points, or 1.56 percent, to end the session at 7,785.25 points.
European markets posted broad declines after the World Trade Organization approved US moves to impose import tariffs on $7.5 billion worth of European goods. The pan-European Stoxx 600 index dropped 1.22 percent to 383.27 whilst the UK’s FTSE 100 fell 1.48 percent to 7,251.33.
Maltese markets also moved lower with the MSE Equity Total Return Index closing down 0.83 percent at 9,873.263 points. Grand Harbour Marina Plc led the losses with shares down 8.96 percent at €0.610, followed by International Hotel Investments Plc which closed down 4.32 percent at €0.775. The only gains of the day were posted by MIDI Plc which closed up 1.49 percent at €0.680.
US imposes tariffs on EU products
The Trump administration imposed 25% tariffs on French wine, Italian cheese and single-math Scotch whisky, amongst other European products, in retaliation for European Union subsidies on large aircraft. The list includes UK-made sweaters, pullovers, cashmere items and wool clothing, as well as olives from France and Spain, EU-produced pork products and German coffee.
The new tariffs are to take effect from as early as the 18th of October. The US Trade Representative’s Office said it would “continually re-evaluate these tariffs based on our discussions with the EU” and expects to enter talks in a bid to resolve the dispute.
The main target of the US tariffs is Airbus aircraft made in the EU, which face a 10% levy. Semi-finished fuselages and wings however are exempted from the levies, meaning that large parts shipped to Airbus manufacturing facilities in the U.S. will not be hit by the duties, allowing Airbus to continue to supply U.S.-based airlines with a limited number of locally assembled aircraft.
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.