Global Market Report - November 19

Asia-Pacific markets rose at the start of the week, while UK currency and stock indices were steady ahead of another key week for the future of Brexit

Morningstar 21/11/2561

Global Market Report

Asia

A near-1% gain on China’s Shanghai Composite Index took it above 2,700 points on Monday after a rally late in the trading session. The move took the index to levels last seen in September and early October before the global volatility knocked most equity indices. Hong Kong, Tokyo and Seoul exchanges were also higher, but Australia’s All Ordinaries lagged the wider Asia-Pacific region.

Nevertheless, trade war rhetoric resurfaced over the weekend, and investors are looking ahead to the G20 summit at the end of the month where China and the US will face each other directly.

Europe

UK housebuilder stocks came under pressure last Thursday after the Cabinet was rocked by a number of resignations over Brexit, not least the UK’s representative in negotiations with the EU, Dominic Raab. These same shares were among the FTSE 100’s biggest fallers on Monday after a release from Rightmove showing a sharp fall in monthly house prices.

Last week’s sharp fall in the pound took it below $1.30, but sterling attempted a minor recovery this morning back towards $1.29. Against the euro, the pound made a strong start this morning but remains below €1.13.

Prime Minister Theresa May speaks at the CBI conference today amid signs that the momentum behind the no confidence vote may be losing strength. A Brussels summit looms at the weekend.

A more stable pound led to steady start for the FTSE 100 this morning, which climbed away from the 7,000 points level with a modest gain.

Eurozone indices were steady at the start of the new trading week.

North America

Thanksgiving is looming but there are still a number of data releases in the US this week. Provisional Durable Goods Orders for October will be released on Wednesday, with the forecast for a drop of 2.5% against growth of 0.7% the previous month. The final reading of the University of Michigan sentiment index for November is also due on Wednesday.

US futures are suggesting modest weakness at the start of the shortened trading week. 

Medtronic (MDC), Lowe’s (LOW) and Target (TGT) report this week.

In Canada, inflation figures are due on Friday. Federal finance minister Bill Morneau puts out his economic statement on Wednesday.

 

 

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