Apple dents markets | Calamatta Cuschieri

Market news update

U.S. stocks closed lower Wednesday, as blue-chip Apple Inc. flirted with bear-market territory and investors worried about emerging signs of sluggish global economic growth. The Dow Jones Industrial Average fell 205.99 points, or 0.8% to 25,080.50 and the S&P 500 index SPX, dropped 20.60 points, also 0.8%, to 2,701.58. The Nasdaq Composite Index shed 64.48 points, or 0.9%, to 7,136.39.

European markets also closed lower, with Italy in the spotlight as its government told the European Union it will forge ahead with its pricey fiscal plans despite calls from the bloc’s authorities to revise its draft budget for next year. The Stoxx Europe 600 dropped 2.2% to 362.27 and the Germany’s DAX 30 shed 0.5 to 11,412.53. Meanwhile, the U.K.’s FTSE 100 slid 0.3% to 7,033.79, moving back and forth across the flat line as the pound jumped around on the latest Brexit developments.

Brexit step-forward

UK Prime Minister Theresa May breathed a momentary sigh of relief yesterday, as her cabinet backed a draft withdrawal agreement between the UK and the EU. After what she described as a “long, detailed and impassioned debate” in a five-hour cabinet meeting, she said it was a "decisive step" in the progress of Brexit, and would allow the agreement to be finalized. The 585-page draft withdrawal agreement has now been published, alongside a shorter statement setting out what the UK and EU's future relations will look like.

Despite winning the backing of her cabinet, the prime minister faces a battle to get the completed deal through Parliament. Northern Ireland's Democratic Unionist Party - which gives the government the support it needs to win key votes - has joined opposition parties in criticising it. The withdrawal agreement covers so-called "divorce" issues. It includes a commitment to protect the rights of EU nationals in the UK and Britons living in the EU to continue living, working and studying.

Oil rebound

Oil rose about 1 percent on Wednesday, recouping some of the previous session’s heavy sell-off, on growing prospects that the Organization of the Petroleum Exporting Countries and allied producers would cut output at a meeting next month to prop up prices. U.S. crude futures rose 56 cents, or 1.01 percent, to settle at $56.25 a barrel, after sliding for 12 straight sessions to the lowest since November 2017.

Oil markets are being pressured by surging supply from OPEC, Russia, the Unites States and other producers and worries that a global economic slowdown could cut into energy demand with the global benchmark Brent Crude, down more than 20% since early October. The rise in U.S. production is contributing to higher stockpiles.

 

Disclaimer: 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.

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