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 22 2017

New records on Wall Street helped give Asian markets a solid headstart on Wednesday, while UK shares were modestly higher ahead of the Chancellor's Budget speech

James Gard 22 November, 2017 | 11:01AM

Asia

Wall Street’s strong performances overnight helped maintain this week’s positive moves in Asian equities. Again, China and Hong Kong were the strongest markets, but Japan’s Topix and Nikkei indices were higher despite a strengthening of the yen against the dollar. Japanese markets are closed on Thursday for Labour Thanksgiving Day. 

Europe

On Budget day, the pound attempted a rally against the dollar but that petered out quickly. Sterling lost ground against the euro, allowing the FTSE 100 to move back tentatively towards the 7,500 resistance level.

Despite unveiling a mixed set of third-quarter results on Tuesday, B&Q owner Kingfisher (KGF) was the biggest riser on the FTSE 100 on Wednesday morning. Yesterday the company said that its Screwfix division was outerperforming, while sales fell at B&Q and stagnated in France.

On the FTSE 250, Thomas Cook (TCG) shares slid nearly 10% as full-year results were mired by higher prices, sterling weakness and intense competition in Spain. Full-year profits fell 40% on 2016.

The travel company’s poor results also dragged down shares in rival operator Tui (TUI), which is currently at the bottom of the FTSE 100

Euro strength took the edge off Germany’s Dax as the country’s political crisis rumbles on.

North America

The last trading day before Thanksgiving is unlikely to throw up too many surprises, particularly as indices racked up another positive day on Tuesday, with the S&P 500 hitting 2,600 points for the first time and the Nasdaq also reaching a new record.

In a speech to New York University Stern Business School on Tuesday night, Federal Reserve chair Janet Yellen said that low inflation remains a puzzle to the Fed board. This sparked a weakening in the dollar against major currencies as the more hawkish case of multiple interest rate rises next year seemed less likely.

Customer relationship management firm Salesforce (CRM) reported earnings after the market close which beat Wall Street estimates but the shares fell nearly 2% in after-hours trading.

Durable goods orders for October are expected to show a rise of 0.4%, compared with a gain of 2% in September.

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
Kingfisher PLC332.20 GBX-0.45
Salesforce.com Inc104.54 USD1.06
Thomas Cook Group PLC117.20 GBX-1.51-
TUI AG1,379.00 GBX-1.15-
About Author

James Gard  is subeditor for Morningstar.co.uk