Asia
Markets in the region again reacted to positive moves in the US after lower-than-expected inflation calmed fears of faster monetary tightening from the Federal Reserve. Energy firms once again outperformed, although anxieties over disruption to Iran oil supplies have started to ease after strong week for crude oil prices.
The Hang Seng had a strong week, adding 1,000 points to 31,000, but today the Hong Kong index’s gains were outdone by those of Japan’s Nikkei 225, which closed up over 1% on the day. Despite a small retreat in the dollar against the yen, the country’s price-weighted index managed to inch ahead, although it’s still off the levels seen at the end of January.
Hong Kong’s GDP was up 4.7% in the first quarter on Q1 2017, its best economic growth in nearly seven years.
Europe
The UK’s Bank of England watchers are now pencilling in August for the next interest rate rise amid much discussion in the media about whether the Bank should be signalling its intentions to the public and the City.
The pound’s run up against the dollar, which has been partly fuelled by expectations of spring action by the Bank of England, has now been snuffed out: from a level above 1.43 in April, the sterling-dollar rate is now just above 1.35. This has helped the FTSE 100 post a 200 point gain this week to just above 7,700 points, although there seemed to be little enthusiasm for any further gains on Friday morning. After yesterday’s flurry of market-moving corporate announcements, the FTSE 100 was led by ITV (ITV) after yesterday’s quarter one trading update.
In contrast to Asia and the US, eurozone markets were mixed on Friday morning.
North America
Canadian unemployment data is due before the Toronto Stock Exchange opens on Friday.
The US data calendar’s highlight is the University of Michigan sentiment index for May, which is a preliminary reading.
The corporate calendar is thinner than in recent days, with media and data giant Thomson Reuters (TRI) among the highlights of those companies reporting before the market opens.
After a strong week, the Dow Jones Industrial Average is aiming for its seventh straight day of gains.
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