Asia
Japan’s Nikkei rebounded from yesterday’s slump by gaining over 300 points to 22,351, with the Topix also rising, despite overnight weakness in US stock markets.
In Hong Kong, technology giant Tencent (00700) reported a near-70% increase in third quarter profit and the company’s share price rose over 2% to 391 Hong Kong dollars. The Hang Seng Index closed above 29,000 points, helped by news of a drop in the jobless rate to a 20-year low, while China’s CSI 300 was nearly 1% higher despite fears over deleveraging in the financial and consumer sectors.
Europe
In London, the corporate agenda was dominated by news that engineer GKN (GKN) had replaced its chief executive before he has even started the job. Kevin Cummings will now no longer take up the role next month and will leave GKN “with immediate effect”. The company’s shares plunged 8% on the news.
The Bank of England Governor, Mark Carney, said in a TV interview this morning that the Bank is prepared to keep inflation low and the financial system secure whatever the outcome of Brexit negotiations. “We can provide support by keeping prices low and stable and by making sure banks can withstand whatever shock that might come whatever deal we have.”
The FTSE 100 was just in positive territory by midmorning despite GKN’s fall as results from British Land (BLND) and 3i (III) were well received.
In the UK, retail sales grew just 0.1% in October month on month and were down 0.3% on a year earlier, the first contraction in four years as higher inflation and economic uncertainty weighed on consumer spending.
In Europe, Spain’s Ibex index was the pick of the exchanges amid a broadly positive trend, helped by a weakening euro.
North America
Weekly unemployment figures are expected to show a modest decrease in initial claims for the week ending November 11 from 239,000 to 234,000.
Investors will be watching to see whether US stock markets can break this week’s losing streak.
Nasdaq-listed Cisco Systems (CSCO) reported earnings after the market close that were marginally better than expected. Talk of a return to revenue growth pushed shares up 5% in after-hours trading.
Today, Wal-Mart (WMT) reports earnings before the market opens, while clothing retailer Gap (GPS) reports after the market closes.
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