U.S. stocks markets recovered from the session’s lows but still closed lower on Thursday as the technology and energy sectors continued to feel the pressures from trade tensions between the U.S. and China are escalating, weighing on the broader benchmarks. The Dow Jones Industrial Average fell 286.14 points, or 1.1%, to 25,490.47, whilst the S&P 500 index lost 34.03 points, or 1.2%, to 2,822.24. The tech-heavy Nasdaq Composite Index retreated 122.56 points, or 1.6%, to end the session at 7,628.28.
European markets also closed lower as uncertainty surrounding global trade conditions and pressure on British Prime Minister Theresa May to resign suppressed investor appetite. The pan-European STOXX 600 index closed down 1.4 percent, with Germany’s DAX closing 1.8 percent lower on weakness in the autos sector. The UK’s FTSE 100 lost 1.4 percent as Prime Minster Theresa May faces pressure from lawmakers to submit her resignation.
Maltese markets also turned lower, with the MSE Equity Total Return Index closing down 0.583% at 9,804.238 points. Medserv Plc led losseds, with shares tumbling 13.06% to end at €0.965. Bank of Valletta Plc also traded 0.75% lower to €1.33 whilst Malita Investments Plc jumped 2.42% to end the session at €0.845.
Boeing’s 737 could fly as early as late June
The Federal Aviation Administration (FAA) expects to approve Boeing Co’s 737 MAX jet to return to service as soon as late June, representatives of the U.S. air regulator informed members of the United Nations’ aviation agency in a private briefing on Thursday. After FAA approval, airlines would install the software and provide pilots with additional training after which, the Boeing 737 Max could start flying passengers again.
China was the first country to ground the 737 MAX two months ago after a crash in Ethiopia killed 157 people in March, in the second such incident for Boeing’s newest aircraft. The China Air Transport Association (CATA) on Friday said it estimates losses at Chinese airlines caused by the grounding of Boeing Co’s 737 MAX aircraft will reach around 4 billion yuan ($579.32 million) by the end of June.
British Prime Minister Theresa May expected to resign
Theresa May is expected to announce the date of her departure from Downing Street on Friday morning, senior cabinet ministers have told reporters. Since January, Parliament has rejected the withdrawal agreement Mrs May negotiated with the EU three times. Recent attempts to find a formal compromise with Labour also failed. May is expected to meet the chairman of the Tory backbenchers to give a timetable for her successor to be chosen, with 10 June likely to be the start of the official leadership race.
Mrs May had planned to publish the Withdrawal Agreement Bill on Friday – the legislation required to bring the agreement into UK law – describing it as "one last chance" to deliver Brexit. However, her proposals – including a customs union arrangement and an offer to give MPs a vote on holding another referendum – angered many Tories. Labour said it was a "rehash" and they would not support the plans.
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.