Global Market Report - July 13

Asia

Japan was the standout market in Asia Pacific on Friday as global markets looked to close the week on a positive note. A near-2% gain in the Nikkei pushed the index back towards the 23,000 points level. In China, the main markets were mixed, with Shenzhen posting gains amid a retreat for the Shanghai Composite Index. While trade tensions have not exactly disappeared, investors have been encouraged this week by China’s restrained response to the recent threats of $200 billion in extra tariffs by the United States. China’s trade surplus with the US expanded in June as imports fell sharply

Europe

Donald Trump’s visit to the United Kingdom was always expected to test the nerve of diplomats but currency traders are the latest group to be affected by the President’s frankness. The pound has been tested recently by the resignation of two Cabinet ministers, although the loss of the Foreign Secretary had more impact on sterling than the exit of the Brexit Secretary, David Davis. Sterling suffered again after Trump said a soft Brexit would not help Britain’s chances of a free trade deal with the United States. Early this year sterling looked set to retest pre-Brexit levels above 1.45 against the dollar. But now the pound is threatening to break through 1.32.

Investors in FTSE 100 trackers and dollar earning stocks will not mind too much as the index spiked back above 7,700 points at the end of a choppy week. Micro Focus (MCRO) was head of the FTSE 100 in early trading, with only three stocks in the red.