Global Market Report - March 22

European investors were spooked by dire German manufacturing data, and this is expected to have a knock-on effect on North American equities at the open on Friday

Morningstar 24/03/2562

Global Market Report

Asia

Main indices in Asia made very incremental gains on Friday, with China’s Shanghai Composite Index and Hong Kong’s Hang Seng holding above the 3,100 and 29,100 point levels respectively.

A positive close on Wall Street helped maintain the risk-on mood ahead of another set of trade talks next week – however, Europe’s abrupt slide on Friday is expected to trigger a fall in US equities that could spill over into Asia for the Monday open.

Europe

Markets in Europe slipped today as this week’s positive mood turned sour on Friday. The trigger was a much weaker German manufacturing purchasing managers’ index (PMI).

France and the UK were the biggest losers among Europe’s main markets as the weaker data put pressure on the euro, and a Brexit extension firms up the pound against major currencies.

The 10-year German bund yield hit 0%, hardly an encouraging sign for the remaining European growth bulls.

North America

US futures are weaker today as the chill from Europe heightens global growth worries ahead of next week’s US-China trade talks. Trade delegates from the US visit China next week, but investors are growing impatient for more concrete news than the talks are “going well”, a vague prospect that – along with the Fed’s dovish stance – has buoyed equity markets in recent weeks.

In economics, Canadian inflation data for February is in view. In the US, manufacturing and service PMIs for March are released.

In stock news, upmarket jeweller Tiffany (TIF) reports earnings today, while shares in jeans maker Levi Strauss (LEVI) popped over 30% on their IPO yesterday.

 

 

 

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