Asia
Stock markets in the region were mixed on Thursday despite a modest move higher in US stocks overnight. While still preoccupied by North Korea, Japanese investors were in relatively upbeat mood, sending the Nikkei and Topix indices higher.
Nevertheless, Japan’s stock markets are lower than at the start of this week. Markets in mainland China and Hong Kong were lower on the day as investors weighed up the latest diplomatic moves between China and the US over North Korea.
Europe
The big event on Thursday in Europe is the European Central Bank’s announcement on interest rates and quantitative easing, followed by the press conference in which ECB president Mario Draghi will outline his views on Eurozone inflation, jobs and growth. Investors expect no change to both Bank rate and asset purchases, although there is a slim chance that the ECB will start to wind down its €60 billion QE programme.
Deutsche Bank (DBK) boss John Cryan earlier this weektold the ECB to end the era of "cheap money".
European banking shares were marked lower as investors weighed up the effect of reducing asset purchases on the region’s financial sector. In Germany, the Dax index was up nearly 1% amid gains for car stocks such as BMW (BMW).
In the UK house prices rose strongly in August, according to building society Halifax. Bovis Homes (BVS) was up 6% despite posting a fall in profits as investors backed the company’s turnaround programme after a run of poor trading. The FTSE 100 was up less than 20 points at 7,371 in midmorning trading.
North America
Investors are closely watching the approach of Hurricane Irma to Florida, after it wreaked devastation across the Caribbean, with insurance stocks set to remain under pressure. In economics, weekly jobless claims and crude oil inventories are the standout numbers. In terms of earnings, Dell (DVMT) is one of the biggest names to be reporting in the US, while Canada’s discount retailer Dollarama (DOL) also posts earning numbers.
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