Global Market Report - April 25, 2018

Asia

Markets in Asia-Pacific tracked Wall Street lower as global investors shunned risky assets in the light of US 10-year bond yields breaching 3%.  Hong Kong’s Hang Seng lost most of Tuesday’s gains, shedding over 300 points or just over 1% on the day. China’s Shanghai Composite Index was also lower. The US dollar held above 109 yen after a brief attempt at this level yesterday. This currency tailwind helped contain some of the losses seen in the Japanese equity markets. The Nikkei 225 and Topix indices were both off by less than 0.5% on the day. The Bank of Japan meets this week and the country is braced for a three-day public holiday for Golden Week.

Europe

A raft of companies updated the London stock market on Wednesday. The standout news on the FTSE 100 was Costa Coffee owner Whitbread (WTB), which said it was committed to spinning out the coffee chain from the wider hotels and leisure group. The rotation away from risk put miners on the back foot and put defensives like tobacco giant Imperial Brands (IMB) at the top of the leaderboard. Housebuilder Persimmon (PSN) was nearly 1% higher after a positive trading statement. Rival Taylor Wimpey (TW) updates the market tomorrow.

Shire (SHP) has recommended a takeover from Takeda for $65 billion after spurning the Japanese company on multiple occasions in a battle that drew in Allergen. The shares dipped in morning trading to £39.