Bearish sentiment in global markets and Boeing’s 737 struggles to take flight
US markets closed lower on Wednesday as a renewed round of pessimism towards the US-China trade deal held back investor appetite. The Dow Jones Industrial Average slipped less than 0.1 percent or 11.4 points, to 26,536.82 while the S&P 500 retreated 0.1 percent, or 3.6 points, to 2,913.78. The Nasdaq Composite Index meanwhile rose 0.3 percent, or 25.2 points, to close the session at 7,909.97 on the back of 13 percent gains from Micron Technology Inc.
European markets also moved lower, with the real estate, healthcare and utilities sectors weighing the most on the region’s bourses. The pan-European STOXX 600 index slipped 0.3 percent as drug-makers Novartis and Roche fell 2.0 percent and 0.7 percent respectively. Germany’s DAX however closed the day with gains on the back of a 7 percent jump in Thyssenkrupp.
Maltese markets also retreated, with the MSE Equity Total Return Index closing down 0.749 percent at 9,772.892 points. Loqus Holdings Plc led the losses with shares falling 22.22 percent to €0.07 whilst the banks all posted gains, with Bank of Valletta Plc adding 0.42 percent to €1.195 and HSBC Bank Malta Plc gaining 0.62 percent to €1.63.
New flaw found in 737 Max
The U.S. Federal Aviation Administration has identified a new risk that Boeing Co must address on its 737 MAX before the grounded jet can return to service, the agency said on Wednesday. The FAA did not elaborate on the latest setback for Boeing, which has been working to get its best-selling airplane back in the air following a worldwide grounding in March in the wake of two deadly crashes within five months.
The risk was discovered during a simulator test last week and it is not yet clear if the issue can be addressed with a software upgrade or will require a more complex hardware fix, sources with knowledge of the matter told reporters.
Boeing’s aircraft are being subjected to intense scrutiny and testing designed to catch flaws even after a years-long certification process.
In a separate statement, Boeing said addressing the new problem would remove a potential source of uncommanded movement by the plane’s stabilizer.
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.