Global Market Report - August 30 2017

Asia

Stock markets in the region showed evidence of calm on Wednesday despite the threat of further action from North Korea after the missile launch over Japan early in the week. Asian stocks took their cue from the US indices, which shrugged off forecasts of a fall to end up in positive territory. The Nikkei 225 closed up nearly 1% at 19,506.54, while Hong Kong’s Hang Seng index finished 1.2% higher at 28,094.61. South Korea’s Kospi index closed a touch higher despite Pyongyang’s threat that it is planning to step up its actions in Asia-Pacific.

Europe

Markets in Europe showed signs of muted recovery after Tuesday’s selloff. By midmorning, the FTSE 100 was 24 points higher at 7362, led by ITV (ITV), which is up nearly 4% at 158p – although the shares have traded above 200p for much of the year. Earnings announcements are relatively light, but one highlight is FTSE 250 oil services firm Petrofac (PFC), whose shares are up 2% to around 431p despite mixed results due to the lower oil price environment. Currently yielding over 10%, the firm is to cut its dividend by over 40% amid lower profits. European bourses are broadly higher on Wednesday morning. Eurozone confidence surveys for August were above forecasts in the industrial and services sector, while remaining negative in terms of consumer confidence. Germany consumer price index numbers are due at 2pm Central European Time, with a rise of 1.8% year on year forecast for August.

North America

Looking ahead to US economic releases, traders will be mostly focused on US GDP numbers, which are due before market open (830am Eastern Time). Forecasts are for the US economy to have grown by 2.7% on an annualised basis in the second quarter. ADP weekly employment numbers will be analysed with a view to Friday’s key non-farm payroll figures for August. Crude oil inventories to August 25^th will also be unveiled as crude futures suggest an easing in oil prices. In terms of company earnings, HR software specialist Workday (WDAY) will be reporting. Toronto Stock Exchange-listed National Bank of Canada (NA) also reports earnings.