Global Market Report - June 11, 2018

World markets started the week modestly higher in a key few days for economic and global politics

Morningstar 12/06/2561


Markets in the region were the first to react to the headline-grabbing G7 summit in Canada. Despite the obvious lack of progress and spats between major countries such as the US and Canada over trade, investor reaction has been muted. As the news cycle moves on, so attention now turns to President Trump’s historic meeting with the North Korean leader in Singapore.

Hong Kong’s Hang Seng edged 100 points higher to reclaim the position above 31,000 points. The yen’s softening against the dollar helped Japanese equities once more. The Bank of Japan makes its interest rate decision at the end of the week.


The pound softened on poor construction figures, helping the FTSE 100 to make some morning gains. It’s a big week for market-moving economic data, with unemployment figures due on Tuesday and inflation data out on Wednesday. The blue-chip index was less than 1% higher in midmorning trading at just over 7,700 points.

UK satellite firm Inmarsat (ISAT) was the standout share on the FTSE 250 after weekend news that it had rejected a takeover offer from a US rival firm.

Spain’s Ibex index was the best performer of the eurozone markets in percentage terms. The major indices were higher ahead of a vital week for the eurozone: the European Central Bank meeting on Thursday is expected to set the timetable for the withdrawal of QE.

North America

The Federal Reserve’s midweek meeting looms over all other items on the economic calendar, with a quarter point rate rise expected to follow March’s rise. Financial markets are expecting up to four rate increases this year.

US inflation is also in view on Tuesday. The consumer price index is expected to have rise by 2.7% in May on the same month in 2017. Retail sales data is also released on Thursday.

Stock market futures suggest a modest rise for the Dow Jones at the open.  



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