Global Market Report - October 3 2017

Asia

Another record closing high on Wall Street gave Asian markets strong momentum on Tuesday, with Japan’s Nikkei index ending 1% higher at 20,614.07, helped by better-than-expected consumer confidence numbers for September. In Australia, the central bank kept rates at 1.5% as expected, while insurer QBE (QBE) pulled the benchmark ASX index down after a $600m hit to profits from recent hurricanes in the US and Caribbean. South Korea’s Kospi rose nearly 1% as the index joined in the rally across Asia-Pacific shares. Chinese equity markets remain closed. Hong Kong’s Hang Seng index was the biggest riser in the region, gaining over 2% on the day to close at 28.173.21, some 6,000 points higher than at the start of the year.

Europe

In the UK, the biggest surprise among economic data was a fall in the monthly construction PMI below 50, which indicates that the sector is contracting. The IHS Markit purchasing managers’ index dropped to 48.1, from 51.1, the steepest fall in activity since just after the vote to leave the European Union in June 2016. The pound softened against the euro and the dollar after the announcement, amid expectations that the data may make the Bank of England hesitate before raising interest rates at its next meeting in November.

The FTSE 100 was little changed in morning trading, while building materials group Ferguson (FERG) was the biggest riser amid strong results and news of a share buyback. The company’s shares rose nearly 4% to £50.45.