US markets started the week higher on Monday, recovering from Friday’s low’s however closing off of the session’s highs as investors kept an eye on the bruised Chinese stock markets. The Dow Jones Industrial Average rose 143.78 points, or 0.5 percent, to 28,399.80 with the S&P 500 index gaining 23.40 points, or 0.7 percent, to 3,248.92. The Nasdaq Composite Index climbed 122.47 points, or 1.3 percent to close the session at 9,273.40.
European markets meanwhile struggled for direction as investors also held back and watched the latest actions taken in China to stimulate its economy. The pan-European Stoxx 600 index edged up 0.3 percent, bouncing in between gains and losses during early trading as travel and leisure stocks staged a rebound whilst oil and gas stocks came under pressure. The UK’s FTSE 100 gained 0.6 percent as a weaker pound lifted stocks.
Maltese markets ended lower, with the MSE Equity Total Return Index closing down 0.208 percent at 9,484.466 points. Most equities traded lower, with Harvest Technologies Plc and International Hotel Invesments Plc losing 1.33 and 1.23 percent to €1.48 and €0.80 respectively. Lombard Bank Malta Plc however broke the trend and jumped 4.59 percent to €2.28 with Go Plc also rising, closing up 0.48 percent to €4.16.
Tesla surges on upbeat earnings
Electric car maker Tesla Inc’s shares surged 20 percent on Monday in its largest one-day gain since 2013, fueled by a quarterly profit at its joint battery business with Panasonic and an investor report predicting its shares would rise more than ten-fold by 2024. The company’s shares are up over 300 percent since early June, and the recent jump, which comes after Tesla posted its second consecutive quarterly profit, is considered a milestone for the company competing against the world’s automotive giants.
Panasonic first invested in Tesla in 2010 and announced its partnership in building the U.S. firm’s Gigafactory plant in Nevada in 2014 as part of its strategic shift from low-margin consumer electronics to automotive components. Panasonic said operating profit for the October-December quarter rose 3% to 100.4 billion yen, beating analysts’ estimates by 49 percent, thanks to the improvement at the Tesla battery business as well as cost cuts.
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.