Global Market Report - August 28

Markets were modestly higher across the board as the US appeared to make a breakthrough in its trade negotiations with Mexico

Morningstar 30/08/2561

Global Market Report

Asia

President Trump’s apparent breakthrough in trade talks with Mexico have been taken by the market as a negative for China. Negotiations between the United States and China appear to have stalled and this is continuing to harm sentiment towards Chinese equities, which slipped back today after a positive start to the week. The Shanghai Composite Index was marginally lower today at 2,777 points and looks set to end the month of August lower than at the start.

China manufacturing and non-manufacturing figures are due at the end of the week.

The rest of the Asia-Pacific region performed better, although gains were modest: Hong Kong’s Hang Seng was up 80 points or 0.28% to 28,351, while Japan’s Nikkei 225 closed up just 0.06% higher at 22,813. Australia’s All Ordinaries was one of the better performing stock markets in the wider region, but again gains were limited to below 1% on the day.

Europe

The UK’s FTSE 250 was the best performing of the major European markets today as traders returned from an extended weekend break. Germany’s DAX and France’s CAC were also in positive territory.

Middle East-focused healthcare firm NMC (NMC) is the top of the FTSE 100 this morning amid reports that it is looking to acquire assets in India, although the company has since commented on the speculation to deny it.

The political fallout from the UK Chancellor’s warnings on a no-deal Brexit have continued. The Prime Minister, Theresa May, who is in South Africa, reiterated that the Government is still looking to achieve a good deal in exiting the EU.

The pound pushed above $1.29 against the dollar.

North America

It is a full week for economic data in the United States: today sees the release of US consumer confidence figures for August, tomorrow sees the second reading of US GDP and Thursday brings Personal Consumption Expenditure (PCE) numbers for July.

Canadian GDP figures for June are also in view on Thursday.

US markets are poised to open near record levels on Tuesday without strong moves in either direction.

Luxury jeweller Tiffany (TIF) reports earnings before the market opens.

 

 

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