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Markets retreat on Fed’s Powell

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U.S. markets moved lower on Thursday as investors digested the latest decision from the Federal Reserve to hold rates steady. The Dow Jones Industrial Average lost 122 points, or 0.4%, to close at 26,308 whilst the S&P 500 slipped 0.2% to 2,918. The Nasdaq Composite declined 0.2% to finish the session at 8,037.

European markets returned from their 1st May holiday and also moved lower, with the US interest rate decision dampening investor appetite. The pan-European STOXX 600 index retreated 0.7 percent with most bourses in the red, however gains from Volkswagen and Bayer helped limit losses.

Maltese markets meanwhile advanced, with the MSE Equity Total Return Index gaining 1.356% to end at 9,633.892. RS2 Software Plc led the gains with shares jumping 5.81% to close at €1.64. Go Plc followed closely behind, with shares up 4.67% at €4.48, with Malta Properties Company Plc up 3.33% at €0.62.

Tesla seeks new funds

Tesla Inc will raise up to $2.3 billion in new capital, with a new financing plan that comes after the company repeatedly pushed back forecasts for turning a profit. The company faces expensive challenges, including launching production in China, overhauling its U.S. retail and service operations and developing new models, including the high-volume Model Y SUV and a Semi commercial truck.

A stock offering price would be at a discount of 0.5 percent to the close on Thursday. Raising $650 million in new shares and $1.35 billion in debt, while giving underwriters the option to buy an additional 15 percent of each offering, could potentially raise the proceeds to $2.3 billion. Chief Executive Officer Musk would also pitch in $10 million of his own money, Tesla said in a filing.

Beyond Meat jumps on trade debut

Shares in vegan beef and sausage marker Beyond Meat Inc. nearly tripled in their first day of trading with a 163 percent surge in price, marking the best debut session of any U.S. listing since at least 2008 among IPOs that raised at least $200 million. Beyond Meat saw its market value balloon to $3.83 billion at the close of trading.

Goldman Sachs, Bank of America Merrill Lynch, Credit Suisse Group AG, Jefferies LLC and JPMorgan Chase & Co. are among the banks that served as underwriters to the El Segundo, California-based company, which is listed on the Nasdaq. The banks have been busy through the start of 2019 with each serving as an underwriter for Lyft Inc. or Uber Technologies Inc.

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.