Asia
Markets in the region were given a boost by weekend news of a trade “truce” between the US and China. Chinese equities were the biggest gainers, but the rises were modest, with closing gains of around 0.5%. Japan had two positive drivers today, from the weaker yen against the dollar and a rise in exports. Nevertheless both exports and imports for April missed forecasts: exports were expected to rise by nearly 9% year on year, against a rise of just under 8%; imports were forecast to rise by nearly 10% but rose by 5.9%. Japan’s trade balance increased by under 200 billion yen on the month.
Europe
With the positive mood from Asia spilling over into European markets, the FTSE 100 sailed past its record high to over 7,800 points.
Only a handful of stocks in the main index were lower on the day. Marks & Spencer (MKS) was one of the biggest risers ahead of Wednesday’s annual results and amid news of store closures.
Germany and Switzerland stock markets were closed for public holidays, but France’s CAC 40 was nearly 1% higher on Friday’s close. The Italian market was slightly softer on the day as stocks went ex-dividend and the country’s political uncertainty weighed on sentiment.
North America
The positive trade news lifted Dow futures on Monday. US retailers release earnings this week, including luxury jeweller Tiffany (TIF), and clothes retailer Gap (GPS).
This week FOMC minutes are in view on Wednesday and Durable Goods data are released on Friday.
Canada’s Toronto Stock Exchange is closed for Victoria Day but this week sees Canadian banks reporting.
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