Markets ignore virus fears and continue to surge

US markets surged higher for a third-straight session on Wednesday, rebounding from last week’s sharp sell-off triggered by fears of the Asian coronavirus outbreak. The Dow Jones Industrial Average jumped 483.22 points, or 1.7 percent, to 29,290.85, with the S&P 500 rising 37.10 points, or 1.1 percent, to 3,334.69. The Nasdaq Composite Index gained 40.71 points, 0.4 percent, to end the session at 9,508.68.

European markets also recovered from their shaky start and closed higher, lifted by the boost on Wall Street. The pan-European Stoxx 600 index climbed 1.1 percent to 423.36, with the German DAX gained 1.3 percent on the back of strong economic data for January. The UK’s FTSE 100 rose 0.7 percent with France’s CAC 40 advancing 1 percent.

Maltese markets meanwhile slipped lower, with the MSE Equity Total Return Index closing down 0.169 percent at 9,529.56 with only four equities posting changes. GlobalCapital Plc led the losses with shares down 6.67 percent at €0.28, followed by Bank of Valletta Plc and HSBC Bank Malta Plc which both lost 0.93 percent to each close at €1.06. Go Plc was the only stock to post gains with shares up 0.48 percent at €4.18.

China to cut tariffs on more US goods

China announced it would halve additional tariffs levied against 1,717 U.S. goods last year early on Thursday, following the signing of a Phase 1 deal that brought a truce to a bruising trade war between the world’s two largest economies.

China’s finance ministry said in a statement that from 0501 GMT on Feb. 14, additional tariffs levied on some goods will be cut to 5% from 10% and others lowered to 2.5% from 5%.

While the announcement reciprocates the U.S. commitment under the deal, it is also seen by analysts as a move by Beijing to boost confidence amid a virus outbreak that has disrupted businesses and hit investor sentiment.

In a separate statement, the finance ministry said the tariffs reduction corresponds with the those announced by the United States on Chinese goods, which were also scheduled for Feb. 14.

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.