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Global Market Report - November 8 2017

Japan's Nikkei fell after its recent winning streak, while UK housebuilders lost ground after Persimmon's trading update failed to impress the City

James Gard 8 November, 2017 | 11:40AM

Asia

After their stellar run, Japanese equities retreated on Wednesday after a more hesistant performance on Wall Street. The Nikkei 225 slipped back but the Topix index managed to end in positive territory.

In Hong Kong, Tencent's (00700) online publishing spinoff China Literature (772) doubled in value as it debuted on the stock exchange.

Investors in the region also had to digest a raft of Chinese trade data. The growth in both imports and exports slowed to 15.9% and 6.1% respectively in October, against the same month in 2016 – the figures were lower than forecast, if trade is analysed in Chinese yuan. Chinese indices were mixed on Wednesday, with the Shenzhen Composite rising and the Shanghai Composite ending lower on the day.

Europe

The UK’s FTSE 100 was lower on Wednesday morning, dragged down by housebuilders and banks. Britain’s biggest housebuilder by market capitalisation, Persimmon (PSN), saw its shares marked down nearly 4% after a mixed trading statement. Marks & Spencer (MKS) shares were also lower as the company warned of “many structural issues to tackle” in the coming years. Half-year revenue and profits were above expectations but the results also contained news that its chief financial officer Helen Weir is leaving the retailer. The company’s head of clothing, Jo Jenkins, announced in October that she will be leaving to head up White Stuff.  

Shares in SSE (SSE), one of the big six energy suppliers in the UK, spiked on Wednesday morning in response to news late on Tuesday of a potential merger with Npower. The shares then fell back in midmorning trading as investors focused on the company’s sharp fall in pre-tax profits for the first half of the year.

European exchanges were weaker on Wednesday morning – in the absence of market-moving economic data, the stronger euro took the edge off recent bullish sentiment. 

North America

Snapchat owner Snap (SNAP) fell nearly 20% in after-hours trading after its weak earnings bucked the trend for digital companies to post forecast-busting results. Revenue and user growth was lower than expected and the company, which floated earlier this year, posted losses of more than $400 million in the third quarter. Before the market opens on Wednesday, casino and hotels group MGM Resorts (MGM) is reporting earnings; 21st Century Fox (FOX), which is planning to take over UK broadcaster Sky (SKY), reports results after the market close.

In economics, mortgage applications and oil inventories for the week to November 3 will be released.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Rating
Marks & Spencer Group PLC309.17 GBX0.71-
MGM Resorts International36.36 USD3.80
Persimmon PLC2,615.00 GBX-0.15-
Snap Inc A13.48 USD-4.50
SSE PLC1,328.93 GBX-0.08
Tencent Holdings Ltd444.20 HKD2.54
Twenty-First Century Fox Inc Class B36.04 USD-0.91
About Author

James Gard  is subeditor for Morningstar.co.uk