US markets commenced the week with action, surging sharply and nearly reversing earlier selloffs to end the session slightly lower. The Dow Jones Industrial Average declined 66.47 points, or 0.3%, to 26,438.48 whilst the S&P 500 index slipped 13.17 points, or 0.5%, to 2,932.47. The Nasdaq Composite Index sank 40.71 points, or 0.5%, to close the session at 8,123.29.
European markets also ended lower following escalated trade tensions between the United States and China. The pan-European Stoxx Europe 300 reversed earlier gains to end 0.3% lower whilst the UK’s FTSE 100 ended flat. Meanwhile, France’s CAC 40 lost 0.4% and Germany’s DAX retreated 0.3% on the back of the renewed uncertainty on global trade.
Maltese markets also moved lower, with the MSE Equity Total Return Index moving 0.264% lower to close the session at 9,655.514 points. Shares in RS2 Software Plc led the declines, closing down 3.66% at €1.58. International Hotel Investments also moved down 3.23% lower to close at €0.75, whilst Trident Estates Plc jumped 4.48% to end up at €1.40.
BMW’s first loss in a decade
BMW AG’s automotive division reported a fiscal loss for the first time in a decade as car prices slumped and a legal provision over alleged collusion swelled to 1.4 billion euros ($1.6 billion). Excluding the provision, earnings at the carmaker’s main unit fell by 42 percent to 1.1 billion euros in the first quarter. Price competition in some markets and spending on new technology cut into profit, the luxury carmaker said Tuesday in a statement.
“We expect the first half-year to be slightly weaker overall,” Chief Financial Officer Nicolas Peter said, as model changeovers impact on sales and costs. “We expect the second half-year to benefit from the strong product momentum.” BMW reiterated its outlook for the year, expecting earnings before tax to fall “well below” the year-ago level while deliveries will rise slightly.
Samsung faces delays for Galaxy Fold
Samsung Electronics said on Tuesday it cannot confirm the shipping date for its foldable device Galaxy Fold yet and apologized to its pre-order customers in the United States for the delay. “If we do not hear from you and we have not shipped by May 31st, your order will be cancelled automatically,” the South Korean tech giant’s U.S. subsidiary told Galaxy Fold pre-order customers in an email late on Monday.
The world’s top smartphone maker delayed global sales of the splashy $1,980 foldable phone after reviewers discovered problems with its display. Although the issue does not hurt Samsung’s balance sheet, the postponement damages the firm’s efforts to portray itself as an innovative first-mover.
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.