U.S. markets started the week lower on Monday as the White House’s restrictions on Chinese telecoms equipment maker Huawei Technologies Co Ltd weighed on the technology sector. The Dow Jones Industrial Average retreated 84.10 points, or 0.3%, to 25,679.90, with the S&P 500 index losing 19.30 points, or 0.7%, to 2,840.23. The Nasdaq Composite Index lost 113.91 points, or 1.5%, to close at 7,702.38.
European markets also closed lower, with the tech and autos sectors weighing on the region’s bourses. The pan-European STOXX 600 index lost 1.1% with AMS, STMicroelectronics, and ASML down between 6.3% and 13.4% as fears of a disruption to the industry’s global supply chain grew. Germany’s DAX fell 1.6% as Deutsche Bank AG dropped 2.9% to fresh lows.
Maltese markets meanwhile moved higher, with the MSE Equity Total Return Index closing up 0.288% to 9,645.665. Simonds Farsons Cisk led the gains with shares jumping 5.82% to €10.00, followed by Malta International Airport which rose 1.45% to €7.00. HSBC Bank Malta Plc meanwhile traded 1.71% lower to close at €1.72.
T-Mobile – Sprint acquisition
T-Mobile US Inc’s $26 billion acquisition of rival Sprint Corp appeared to win the support of a majority of the Federal Communications Commission on Monday, in a significant step toward the deal’s approval. FCC Chairman Ajit Pai, a Republican, came out in favor of the combination after the companies offered concessions, including selling Sprint’s Boost Mobile prepaid cell service.
If the deal is completed, the number of U.S. wireless carriers would drop to three from four, with Verizon Communications Inc and AT&T Inc leading the pack. Sprint shares initially surged 23.2% while T-Mobile shares rose 5.1%, but both pared gains to close at 18.8% and 3.9% higher respectively.
Theresa May faces a showdown with her cabinet on Tuesday as she seeks their backing for one last push for her divorce deal with the European Union. May said she will put the Withdrawal Agreement Bill — which enshrines the Brexit deal into law — to a vote in Parliament in the week of June 3 and is trying to find a way to get it passed. Formal talks with Labour broke down Friday, but she is seeking to win over enough of the party’s lawmakers to get her deal over the line.
Pro-Brexit ministers and those looking to succeed May as prime minister are expected to lead objections as they debate proposals to make the agreement more attractive to the opposition Labour Party, potentially including a much tighter customs relationship with the bloc.
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.