Global Market Report - November 21

Asia and Europe markets resisted Wall Street's steep decline, while US traders braced for a raft of economic data ahead of Thanksgiving

Morningstar 21/11/2561

Global Market Report

Asia

China and Hong Kong shares closed the day higher despite a sharp fall on Wall Street on Tuesday. Although another fall in the share price of Apple (AAPL) hit Asian suppliers to the mobile phone giant.

Still, trade war fears have not gone away, with US blasting China for sticking to “unfair” and “unreasonable” trade practices despite tariffs. The two sides are set to clash at the G20 summit at the end of the month.

Japan’s Nikkei 225 lost ground despite a strengthening in the dollar against the yen to above Y113.

Europe

Markets in Europe shrugged off the alarm from Wall Street, with most major indices posting daily percentage gains above 0.5%. The FTSE 100 is back above 7,000 points, while Spain and Italy markets posted 1% gains approaching midday.

Italy is in focus today as the country’s budget is scrutinised by lawmakers. Signs of apparent concessions by the new government have helped the euro, Italian stocks and bonds on Wednesday. So far the feared crisis in Italian public finances has not been played out in debt markets, but the issue of Italy’s debt can always resurface.

An early bounce in the pound was snuffed out by news that October public borrowing was worse than expected.

North America

A day before Thanksgiving, US stock market futures are indicating gains today after a bruising session yesterday. The Dow Jones is expected to rise by 100 points on Wednesday after Tuesday’s 500 point slide, while S&P 500 futures gained 17 points following a loss of nearly 50% in the previous session.

Energy stocks were rattled by a plunge in crude prices yesterday but they are expected to climb back off the floor today if oil rebounds.

US economic data today including reports on durable goods orders, weekly jobless claims, and existing home sales. Durable goods orders are forecast to 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.

In Canada, wholesale trade sales for September are due today and inflation figures for October are due on Friday.

Gap (GPS) and Footlocker (FL) report quarterly earnings after the stock market closes.

 

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