US markets closed higher on Thursday as initial fears of a potential trade and currency war between the US and China gave way to renewed investor appetite for dipped stocks. The Dow Jones Industrial Average gained 371.12 points, or 1.4 percent to 26,378.19, whilst the S&P 500 index rose 54.11 points, or 1.9 percent, to close at 2,938.72. The Nasdaq Composite Index jumped 176.33 points, or 2.2 percent, to close the session at 8,039.16.
European markets also climbed, enjoying their best day in almost two months as upbeat trade data from China and a steadying currency within the Eurozone helped calm fears of a recession. The pan-European STOXX 600 index closed 1.7 percent higher with the basic resources and materials sectors leading the gains. Most of the region’s bourses closed the session with gains of more than 1 percent.
Maltese markets meanwhile moved lower, with the MSE Equity Total Return Index closing down 0.873% at 9,792.47. FIMBank Plc’s 2.9 percent gain, which saw it close at $0.710 was unable to outweigh the 3.8 percent loss posted by International Hotel Investments Plc and the 3.23 percent loss registered by Malta International Aiport Plc which saw the companies close at €0.76 and €7.50 respectively.
Uber falls on record losses
Shares in Uber Technologies Inc fell 6 percent after the ride-hailing company reported a record $5.2 billion loss and revenue that fell short of Wall Street targets on Thursday as growth in its core ride-hailing business slowed, sending its shares down 6%. The report caught investors off guard in part because Uber’s smaller rival Lyft Inc on Wednesday had raised revenue expectations and described an easing price war.
Uber’s second-quarter net loss, widening from a loss of $878 million a year earlier, included $3.9 billion of stock-based compensation expenses related to its IPO earlier this year and nearly $300 million in “driver appreciation” related to the stock sale.
US settlement drives Bayer
Bayer shares soared as much as 11% on Friday on reports that the German drug-maker has proposed to pay $8 billion (£6.59 billion) to settle more than 18,000 U.S. lawsuits on its glyphosate-based weedkiller Roundup case.
Although an agreement may not be imminent, if successful, it would ease investor pressure of massive litigation risks that have weighed on the stock and driven speculation about the breakup of the German drug and chemical giant.
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.