US stocks jumped out of the gate and notched fresh records for the first trading day of 2020. The Dow Jones Industrial Average jumped 330.36 points, or 1.2 percent, to 28,868.80 while the S&P 500 rose 27.07 points, or 0.8 percent, to 3,257.85. The Nasdaq Composite index surged 119.59 points, 1.3 percent, to end the session at 9,092.20.
European markets also steamed ahead as most bourses returned from the New Year break. The pan-European Stoxx 600 index and the UK’s FTSE 100 both jumped 1% with France’s CAC 40 climbing 1.4 percent early in the session. Germany’s DAX also gained 1.4 percent.
Maltese markets remained closed on Thursday with regular trading resuming Friday 3rd January.
Tesla cuts China Model 3 prices
American electric car maker Tesla Inc cut starting prices for its China-made Model 3 sedans by 16% to 299,050 yuan after receiving Chinese subsidies for electric vehicles. The company, after publishing information on the discounts on its China website, has said it plans to start delivering cars, made at its $2 billion factory in Shanghai, to the public on the 7th of January.
The price cut from an earlier 355,800 yuan is among a slew of adjustments Tesla has made to its sales policy in China and comes partly thanks to 24,750 yuan of subsidies and tweaking prices for car accessories and home charging facilities. Earlier this week, Tesla said that 30% of its China supply chain was localized, which means some car parts are shipped in to build its cars. The automaker wants to completely localise its China supply chain by end-2020, it said at the time.
Tensions shock markets
Crude oil prices skyrocketed and U.S. futures fell on Thursday night following news that a top Iranian general and an Iraqi militia’s deputy commander were killed in a U.S. airstrike at Baghdad’s airport. Reports emerged that the airstrike killed Gen. Qassem Soleimani, head of Iran’s elite Quds Force and architect of its regional security apparatus.
Late Thursday night, the Pentagon said President Donald Trump had approved the attack, and said Soleimani “was actively developing plans to attack American diplomats and service members in Iraq and throughout the region.”
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.