US markets erased their earlier gains and closed lower on Thursday after President Donald Trump announced plans to impose additional tariffs Chinese imports and caused a sharp turn-around on Wall Street. The Dow Jones Industrial Average retreated 280.85 points, or 1.1 percent, to 26,583.42 whilst the S&P 500 index sank 26.82 points, or 0.9 percent to end at 2,953.56. The Nasdaq Composite Index fell 64.30 points, or 0.8 percent, to close the session at 8,111.12.
European markets meanwhile moved higher on the back of strong earnings from British American Tobacco and further sentiment from the London Stock Exchang-Refinitiv deal. The pan-European STOXX 600 index closed up 0.5 percent as the benchmark overcame losses from the oil & gas and materials sectors.
Maltese markets also retreated with the MSE Equity Total Return Index closing down 0.344 percent at 9,819.335 points. MIDI Plc led the losses with shares down 3.7 percent at €0.65, followed by Bank of Valletta Plc which shed 1.82 percent to €1.08. RS2 Software Plc was the only equity to turn positive with shares adding 0.53 percent to €1.90.
Boeing announces more changes to 737-Max
US plane-maker Boeing plans further changes to the software architecture of the 737 MAX flight-control system to address a flaw discovered after a test in June, two people briefed on the matter said late on Thursday. The move comes in response to an effort to address a problem discovered in June during a Federal Aviation Administration simulator test.
After two deadly crashes of Boeing’s 737 MAX and the ensuing heavy criticism of the FAA for its limited oversight of the jet’s original certification, the agency has been reevaluating and recertifying Boeing’s updated flight-control systems.
The FAA said in June that it had identified a new risk that would need to be addressed before the plane could be ungrounded. Boeing Chief Executive Dennis Muilenburg told analysts last month that he was confident the 737 MAX would be back in service as early as October after a certification flight in “the September time frame”. Boeing still hopes to complete the software redesign by the end of September to submit to the FAA for approval.
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.