Asia
China’s positive start to 2019 continued today with a gain for the Shanghai Composite Index. After last year’s 25% fall in China stock markets, talk of possible progress in trade talks between China and the US – as well as a rebound in US equities – has helped the cause for domestic stocks. A US trade delegation arrives in Beijing for two days of talks today. The likely outcome is of an extension to the existing 90-day “truce”.
Hong Kong’s Hang Seng tracked the rise in mainland China markets.
Thursday sees the release of China’s consumer price index for December. The rise in the cost of living in the country is expected to have dropped from 2.2% to 2.1% in December on an annual basis. New loans data is also due on the same day.
Japan’s Nikkei was a big gainer on Monday, rising nearly 2.5% to move back above 20,000 points.
Europe
Considering the bounce on Wall Street on Friday, the FTSE 100’s reaction has been muted on Monday morning, tempered by a rise in the pound against the dollar. After a modestly positive start the FTSE 100 is in negative territory this morning and is down 25 points at just over 6,800 points. Centrica (CNA) was the biggest faller so far today.
Sainbury’s (SBRY) shares were higher ahead of a report on festive trading on Wednesday.
European markets were also lower to start the new trading week.
North America
Following Friday’s strong gains, US stock futures suggest a mixed start at the open.
Minutes from the last Federal Reserve meeting, where interest rates were raised for the fourth time in 2018, will be due on Wednesday. Friday’s highlight is inflation data for December, which is expected to show a drop in the rise in the cost of living from November. The Fed’s Jerome Powell, whose speech last week helped boost markets, will speak before The Economic Club of Washington after the stock market opens on Thursday.
The US stock market earnings calendar is understandably light this week. Amid a range of Canadian companies reporting on Thursday and Friday, Cogeco (CGO) is one of the largest.
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