Asia
China’s stock market was the standout laggard among global markets on Tuesday, posting a very slender loss on a day when Japan and Hong Kong exchanges nudged higher. It’s day two of the US-China trade talks and there has so far been an absence of market-moving announcements. That could change when President Trump addresses the nation in a TV broadcast on Tuesday night. Any positive news flow, including another 90-day extension to the current truce, could boost Asia-Pacific markets on Wednesday
Europe
UK and Eurozone stock markets made minor progress on Tuesday morning, tracking the so far positive global mood at the start of the year.
Supermarket Morrisons (MRW) is the first of the big names to report its Christmas trading figures. Its fourth-consecutive Christmas of sales growth was shrugged off by the market, with shares off nearly 4% - making it Morrisons the biggest faller in the FTSE 100.
German industrial production slumped nearly 5% in November from the year before, which flags concerns about the Eurozone’s biggest economy. Eurozone economic confidence figures for December were below forecasts.
The euro lost ground against major currencies as economic data disappointed.
North America
US stock market futures point to a modest gain at the open on Tuesday after another positive close in the previous session.
Tomorrow sees the release of minutes from the last Federal Reserve meeting, where interest rates were raised for the fourth time in 2018. Any Fed statement has particularly strong resonance at the moment, particularly with Jerome Powell in Trump’s cross hairs at the end of last year.
Powell, whose speech last week helped boost markets, will speak before The Economic Club of Washington after the stock market opens on Thursday.
Trade balance data is due today for November.
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.
Oil markets continue to recover after the drubbing at the end of last year, with WTI crude futures just below $50 per barrel.
:quality(80)/cloudfront-us-east-1.images.arcpublishing.com/morningstar/WDFTRL6URNGHXPS3HJKPTTEHHU.png)
:quality(80)/cloudfront-us-east-1.images.arcpublishing.com/morningstar/SJ4TPTNUHRHMDOLNIMADKA7WW4.jpg)
:quality(80)/cloudfront-us-east-1.images.arcpublishing.com/morningstar/AY4IODDAJRDHVPZMQKMI3BD5JE.png)
