Global Market Report - December 12 2017

Asia

Markets in the region dropped back on Tuesday after recent attempts to regain some of the ground lost in recent weeks. This weakness, with China’s CSI 300 being the worst performer, came despite another rise on Wall Street overnight and a global push higher for energy stocks after a surge in the price of crude oil. Dollar weakness and yen strength took the edge off attempts by Japan’s Nikkei to regain the 23,000 points level. The Hang Seng index in Hong Kong closed down on the day as bellwether tech stock Tencent (00700) lost 3%. 

Europe

The UK inflation rate hit a new five-year high of 3.1% in November, according to the Office for National Statistics. This pushed up sterling after earlier weakness, which usually would be a trigger for lower share prices. Nevertheless, the oil price increase pushed energy stocks Shell (RDSB) and BP (BP) up over 1%, driving the index into positive territory. The Bank of England governor, who will be in the spotlight on Thursday when he announces the latest interest rate decision, will have to write a letter to the Chancellor explaining why inflation is more than 1% above target.

Temporary power supplier Ashtead (AHT) was the biggest riser in the FTSE 100 this morning as investors backed its first-half results. The company has been working in the US and Caribbean to assist with efforts to fix infrastructure after the hurricanes earlier in the year. Ashtead’s profits were higher than a year ago, it raised its full-year guidance and announced a share buyback. The shares were up 4% at £21.