Global Market Report - October 10 2017

Stock markets in Japan climbed after yesterday's public holiday, while Spain's Ibex index was lower ahead of a key announcement on the Catalonian crisis

Morningstar 11/10/2560

Asia

Japanese equity markets picked up where they left off last week, resuming their upward move after Monday’s public holiday. As campaigning kicked off for the general election on October 22, the Nikkei index pushed towards the 21,000 points level, gaining 132 points on Friday’s close. The Topix index also moved higher, closing at 1,695.14, reaching levels last seen before the financial crisis.

South Korea’s stock market was the best performing in the Asia-Pacific region on Tuesday, rising nearly 2% to 2,433.81, a new record high, helped by strong gains in Samsung (005930) stocks.

China’s CSI 300 and Hong Kong’s Hang Seng indices were also higher on the day. The head of China’s statistics bureau, Ning Jizhe, said the country would meet or exceed the economic growth target of 6.5% for the full year after a strong first six months of the year. China’s ruling communist party begins its party conference next week, which will see medium-term target set for various key industries. September lending figures will be released on Tuesday, forecast to be around 20% higher than August levels after China’s central bank relaxed lending criteria.

Europe

Spain’s Ibex index was lower again, shedding more than 0.5% to around 10,176, ahead of a closely watched speech at 6pm local time by Catalonian president Carles Puigdemont – the address to the regional parliament could contain a unilateral declaration of independence by the region.

There were a number of data points for UK currency and equity investors to digest, especially the news that Britain’s trade deficit – the gap between imports and exports – has widened to a record high after a surge in imports.

The FTSE 100 held above the 7,500 level amid minor gains for banks and commodity firms.

In Germany, the Dax index was off slightly approaching midday local time, as the stock market failed to build on Monday’s record high just below 13,000 points. Germany’s trade balance for August was slightly better than expected. 

North America

In the US, investors are braced for the start of the bank reporting season on Thursday, which will be kicked off by Citigroup (C) and JP Morgan (JPM). Canadian housing starts for September and building permits for August will be in focus. The IMF’s World Economic Outlook will be released before US market open – investors will be keen to see the Fund’s views on US economic growth after a range of mixed data, including a surprise contraction in the jobs market in September. Federal Reserve minutes from last month’s meeting will also be released. US stock markets are predicted to open higher, according to early futures markets.

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