By continuing to use this site you consent to the use of cookies on your device. Find out more about our cookie policy and the types of cookies we use by clicking here

Global Market Report - November 16 2017

Asian markets rose on Thursday despite Wall Street's weakness, while European indices were higher as the euro lost ground

James Gard 16 November, 2017 | 10:59AM

Asia

Japan’s Nikkei rebounded from yesterday’s slump by gaining over 300 points to 22,351, with the Topix also rising, despite overnight weakness in US stock markets.

In Hong Kong, technology giant Tencent (00700) reported a near-70% increase in third quarter profit and the company’s share price rose over 2% to 391 Hong Kong dollars. The Hang Seng Index closed above 29,000 points, helped by news of a drop in the jobless rate to a 20-year low, while China’s CSI 300 was nearly 1% higher despite fears over deleveraging in the financial and consumer sectors. 

Europe

In London, the corporate agenda was dominated by news that engineer GKN (GKN) had replaced its chief executive before he has even started the job. Kevin Cummings will now no longer take up the role next month and will leave GKN “with immediate effect”. The company’s shares plunged 8% on the news.

The Bank of England Governor, Mark Carney, said in a TV interview this morning that the Bank is prepared to keep inflation low and the financial system secure whatever the outcome of Brexit negotiations. “We can provide support by keeping prices low and stable and by making sure banks can withstand whatever shock that might come whatever deal we have.”

The FTSE 100 was just in positive territory by midmorning despite GKN’s fall as results from British Land (BLND) and 3i (III) were well received.

In the UK, retail sales grew just 0.1% in October month on month and were down 0.3% on a year earlier, the first contraction in four years as higher inflation and economic uncertainty weighed on consumer spending.

In Europe, Spain’s Ibex index was the pick of the exchanges amid a broadly positive trend, helped by a weakening euro.

North America

Weekly unemployment figures are expected to show a modest decrease in initial claims for the week ending November 11 from 239,000 to 234,000.

Investors will be watching to see whether US stock markets can break this week’s losing streak.

Nasdaq-listed Cisco Systems (CSCO) reported earnings after the market close that were marginally better than expected. Talk of a return to revenue growth pushed shares up 5% in after-hours trading.

Today, Wal-Mart (WMT) reports earnings before the market opens, while clothing retailer Gap (GPS) reports after the market closes. 

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
3i Ord878.50 GBX1.09
British Land Co PLC654.66 GBX0.87-
Cisco Systems Inc37.87 USD-0.24
Gap Inc33.88 USD0.83
GKN PLC301.60 GBX-0.23
Tencent Holdings Ltd393.20 HKD-3.01
Wal-Mart Stores Inc96.79 USD-0.14
About Author

James Gard  is subeditor for Morningstar.co.uk