Asia
Wall Street’s overnight weakness, as traders caught up with the latest threat from North Korea after the long weekend, pushed Asian markets lower on Wednesday. With the Dow Jones falling 200 points by the close, most Asia-Pacific indices – including the Nikkei, Hong Kong’s Hang Seng, China’s CSI 300 – were sold off.
Among Japanese companies reporting, shares in semiconductor firm Mitsui High-Tec were up nearly 1%, despite missing earnings forecasts. Australian GDP for the second quarter was slightly lower than forecast, rising 1.8% year on year, the same as in the first quarter – the All Ordinaries index dipped on Wednesday.
Europe
Disappointing German factory orders were added to the mix on Wednesday for European investors. Germany’s Dax and France’s Cac indices were a tough lower approaching midday. Retail figures for the eurozone suggest that the sector is still just above the level the separates expansion from contraction.
One of the UK’s biggest housebuilders, Barratt Developments (BDEV) reported full-year results today ahead of forecasts, announcing a special dividend for investors. Nevertheless, the market was more concerned by the company’s forecast for modest growth in order volumes this year. As a result, shares were marked down over 3% at 604p.
A positive update on a recent acquisition from software firm Micro Focus (MCRO) sent the company to the top of the FTSE 100 leaderboard, with the shares up over 7% at £23.70.
North America
Looking ahead to US and Canadian data, the two biggest economic announcements are Canada’s interest rate decision and US service data – both from the ISM and from global data firm Markit. The Bank of Canada is expected to keep interest rates on hold at 0.75%.
The Federal Reserve also releases its “Beige Book” – a report published eight times a year on current economic conditions across 12 of the Federal Reserve Districts. Futures suggest that US markets will fall at the open, particularly with Hurricane Irma adding to investors’ many concerns.
In terms of companies reporting, Canada’s convenience store giant Alimentation Couche-Tard (ATD) publishes earnings. Nasdaq-listed industrial firm HD Supply (HDS) also reports.
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