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Markets close lower for the weekend

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Market profit-taking, recalls for Daimler cars and Turkey’s new mayor as opposition

US markets closed the week lower on Friday however were still on track to log weekly gains after the Federal Reserve’s hints on carrying out interest rate cuts throughout the year. The Dow Jones Industrial Average slipped 34 points, or 0.1 percent, to 26,719 whilst the S&P 500 lost 0.1 percent to around 2,951 after previously closing at its all-time high. The Nasdaq Composite reversed 0.2 percent to end the session at 8,032.

European markets also reversed course and ended lower with the healthcare and media sectors leading declines. The pan-European STOXX 600 index retreated 0.4 percent however posted a third-straight week of gains after signs that the European Central Banks is also on the verge of another round of action to support growth.

Maltese markets continued the trend and also moved lower with the MSE Equity Total Return Index closing down 0.258 percent at 9,875.384. RS2 Software Plc led the gains with shares closing up 3.6 percent at €1.45 followed by Lombard Bank Plc which ended up 1.77 percent at €2.30. HSBC Bank Malta Plc meanwhile lost 0.61 percent at €1.62.

Daimler recalls more cars linked to emissions testing

Daimler must recall 60,000 Mercedes diesel cars in Germany after regulators found that they were fitted with software aimed at distorting emissions tests, the Transportation Ministry said on Saturday. Daimler confirmed that the recall was ordered on Friday but said that it would appeal against the decision while continuing to cooperate with regulators.

Since rival Volkswagen admitted in 2015 to cheating U.S. emissions tests, the scandal has spread to other carmakers. Daimler has ordered the recall of 3 million vehicles to fix excess emissions coming from their diesel engines.

Turkish opposition candidate wins Mayor race

Turkish opposition candidate Ekrem Imamoglu won the redo of the Istanbul mayor’s race by a landslide on Sunday, in a stinging indictment of President Recep Tayyip Erdogan’s economic policies and his refusal to accept an earlier defeat. Erdogan, who had challenged Imamoglu’s win in the original vote, accepted the outcome of the rerun he championed, but has hinted the new mayor could run into legal problems.

Istanbul erupted in celebration over the opposition victory, effectively the first since Erdogan came to power 16 years ago. Major thoroughfares were packed with cars honking their horns, passengers hanging out of windows and waving Turkish flags through sunroofs. Imamoglu, in his victory speech, said he was willing to work with Erdogan and would like to meet with him.

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.