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Global Market Report - October 24 2017

Japan's markets posted their 16th consecutive daily rise, a new record, while US investors have a raft of earnings figures to digest

James Gard 24 October, 2017 | 11:53AM

Asia

A rare fall in the Dow Jones and S&P overnight failed to dampen the spirits of Japan’s equity investors, who pushed the country’s indices to a record 16th consecutive daily gain. The Topix and Nikkei indices both closed less than 1% higher as markets continued to react to the prospect of more Abenomics after Sunday’s election victory.

The picture across Asia was more mixed; Hong Kong’s Hang Seng fell 150 points to 28,155, but China’s CSI 300 hit a 26-month-high of 3,959 on gains in financial stocks. Larger stocks gained as the country awaits news of changes to the Communist Party elite.

Europe

The FTSE 100 slipped back into negative territory in midmorning after a positive start to the day. A softening in the pound, as the City scales back expectations that the Bank of England rate rise is a “done deal” next week, helped support listed shares. Half-yearly results from Costa Coffee and Premier Inn owner Whitbread (WTB) were not well received despite a rise in group profits and revenues and a hike in the dividend to 31.4p a share. Weakening in growth at its coffee chains was the cause of a 5% fall in the company’s shares to £37.40.

Tomorrow sees the release of UK economic growth data for the third quarter, plus results from Lloyds Banking Group (LLOY) and GlaxoSmithKline (GSK).

Across Europe, indices were in positive territory approaching midday amid mixed purchasing manager surveys: in Germany, for example, manufacturing data came in above forecast, while services – while still expanding – came in below expectations.

North America

Today’s earnings highlights are General Motors (GM), McDonald’s (MCD), Eli Lilly (LLY) and 3M (MMM). AT & T (T) reports after market close. General Electric (GE) stock is in focus as it plunged 6% on Monday night amid fears that its dividend is under threat. The move dragged down the Dow Jones are a recent strong run for the index, as well as the S&P 500 and Nasdaq.

In economics, provisional October numbers for manufacturing and services are due for release today. 

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Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Rating
3M Co237.53 USD-0.74
AT&T Inc37.38 USD1.30
Eli Lilly and Co86.10 USD-0.66
General Electric Co17.91 USD1.47
General Motors Co41.51 USD-0.40
GlaxoSmithKline PLC1,314.50 GBX0.88
Lloyds Banking Group PLC67.33 GBX1.04
McDonald's Corp172.20 USD-0.61
Whitbread PLC3,876.00 GBX-0.31-
About Author

James Gard  is subeditor for Morningstar.co.uk