Maltese market closed in red on Monday, with MSE total index ending the session 0.209% lower to 9,400.321 points. Best and only one positive performer on equity market was GO plc. It added 0.48% to close at 4.16. Biggest fall, of 6.06% was seen from Trident Estates plc with closing price of 1.55. Followed by MIDI plc with 3.30% drop, to close at 0.498. Less than 1% fall was also seen from HSBC Bank Malta plc and Plaza Centres plc.
Many of Europe’s main equity benchmarks finished the Monday session at or near multi-year highs as investors cheered news of a ‘phase one’ trade agreement between the US and China. The benchmark Stoxx Europe 600 index was up 1.39% at 417.75, while France’s CAC 40 was 1.23% higher at 5,991.66. Germany’s DAX was up 0.94% at 13,407.66, underperforming its peers after some disappointing data.
All three major U.S. stock indexes closed with gains on Monday as investors were encouraged by improved Chinese economic activity, coming on the heels of last week’s de-escalation of the U.S.-China trade war. The Conservative victory in the U.K. election and a brighter Brexit outlook has also lifted European stocks to a record high.
The United States and China have agreed on the terms of a “Phase One” trade deal that reduces some U.S. tariffs on Chinese goods.
Neither side has released many specific details of the agreement, which the United States says is 86 pages.
Chinese officials are describing the deal in guarded terms, not publicly confirming much of Washington’s version – especially on goods purchase commitments.
The United States suspended planned 15% tariffs that were scheduled to go into effect on Sunday on nearly $160 billion worth of Chinese goods, including cell phones, laptop computers, toys and clothing.
China canceled its retaliatory tariffs due to take effect that same day, including a 25% tariff on U.S.-made autos.
The U.S. Trade Representative’s office said it would cut by half the tariff rate it imposed on Sept 1 on a $120 billion list of Chinese goods, to 7.5%
U.S. tariffs of 25% on $250 billion worth of Chinese goods will remain unchanged, providing U.S. negotiating leverage for a second phase of negotiations next year, according to USTR.
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.