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Global Market Report - November 17 2017

Global stock markets were dictated by dollar weakness after overnight US political developments put pressure on President Trump

James Gard 17 November, 2017 | 10:52AM

Asia

The tentative rebound in Japan markets after the selloff earlier in the week was halted by a strengthening yen. Nevertheless, the country’s Nikkei and Topix indices closed a touch higher than on Thursday. Asia-Pacific indices such as Hong Kong’s Hang Seng and China’s CSI 300 rose after Wall Street’s bounceback. Australia’s ASX closed above 6,000 points, close to its post-financial crisis high. 

Europe

The UK’s FTSE 100 was lower on Friday morning around 7,366 points as a spike in the pound against the dollar weakened UK equities. Dollar earners such as miner Anglo American (AAL) and electricity network owner National Grid (NG) were among the biggest fallers.

European exchanges were weighed down by weaker company results and broker downgrades. A spike in the euro overnight against the dollar also hit sentiment. Italy’s FTSE MIB was the worst performer among weaker eurozone indices.

North America

US stock markets rebounded strongly on Thursday after the House of Representatives voted in favour in favour of the tax reform plan. Fears of a delay to corporate tax cuts have recently taken the edge of the US markets’ push to new records.

However, the dollar slid in early trading after late news that special counsel Robert Mueller had requested documents from President Donald Trump's campaign over ties with Russia.

After the market closed on Thursday, clothes retailer Gap (GPS) released forecast-beating earnings and raised its guidance for the full year. The company’s shares surged nearly 7% to close to $30 in after-hours trading. Rival retailer Abercrombie and Fitch (ANF) also reports on Friday.

In Canada, the week’s standout economics data come on Friday with the release of October’s Consumer Price Index. The forecast is for a 1.4% rise in the cost of living on October 2016, a slight softening from September.

The US housing market will also be in focus with the release of October housing starts and building permits. Housing starts are expected to have grown by over 5% in October after contracting nearly 5% in the previous month. 

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
Abercrombie & Fitch Co Class A17.91 USD-0.56-
Anglo American PLC1,377.50 GBX-0.36
Gap Inc33.60 USD0.33
National Grid PLC880.30 GBX0.15
About Author

James Gard  is subeditor for Morningstar.co.uk