Maltese markets erased their previous gain and closed 0.17% lower, with the MSE Equity Total Return Index moving to 9,692.29. Simonds Farsons Cisk P.l.c posted a 1.52% gain, coming to a close of €10, followed by a 0.76% gain from Malta Properties Company P.l.c and closing at €0.67. Meanwhile, MIDI p.l.c experienced a loss of 3.60%, closing at €0.67.
US stocks struggled for direction after a slide in technology companies offset a rally in bank shares. The Dow Jones Industrial Average outperformed by a 0.19%, or 49.56 points, with Boeing and JPMorgan Chase shares backing the blue-chip’s index intraday rally. The S&P500 closed 0.05%, or 1.48 points, lower while the Nasdaq Composite Index fell by 0.36%, or 28.82 points.
European markets also fell, reflecting investors’ uncertainties about future economic growth. The pan-European STOXX600, ended lower by 0.40% or, 1.51 points, whilst the London FTSE 100 index declined by 1.05%, or 75.79 points, following a jump in the pound.
The G-7 Summit
The annual G-7 summit is set to take place this weekend, with President Trump and other leaders of ‘the world’s most industrialized nations’ first to examine the state of the global economy. The opening discussion was Trump’s idea as he still insists that the U.S economy is sturdy, even though the fears of a recession are on the rise.
Meanwhile, global economic growth has faltered due to weaknesses in the German and Chinese economy. Trump is scheduled to be in discussion with several world leaders including France’s president Emmanuel Macron, to raise the issue of the French landmark tax imposed on US technology companies.
This tax is intended to keep multinational corporations in line with their taxes and not avoid them by setting up European headquarters in low-tax European countries. At present, prominent tech companies including Uber, Apple and Facebook pay insignificant amounts of tax on their broad business in France. According to Trump, this tax prejudices US businesses, and thus leave him with no option but to impose tariffs on French wine.
Macron added that an attempt to reach a common conclusion would be difficult, citing that the world has reached ‘’a very deep crisis of democracy’’. European political analyst Constantine Fraser added that the G-7 hosts will try their utmost to manage the meeting in a civilized way without it turning into an ‘’embarrassing mess with everyone arguing with each other.’’
This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, https://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.