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Global Market Report - December 7 2017

World equity markets recovered some ground after the selloff seen earlier in the week

James Gard 7 December, 2017 | 10:53AM

Asia

With US markets stabilising after a recent wobble, Asia-Pacific shares recovered from recent selloffs. But the country-by-country picture was mixed: Hong Kong’s Hang Seng was higher but China’s CSI 300 fell over 1% on the day. Japan’s Nikkei 225 gained over 300 points, recouping some of the previous day’s losses, as the dollar gained ground against the yen. Some of the region’s biggest fallers in recent days, such as tech and automotive stocks, regained some ground on Thursday.

Europe

Eurozone indices such as Germany’s Dax and France’s CAC 40 rebounded on Thursday, in tune with the more cautious return to risk evidenced on Wall Street. Exchanges in Portugal, Italy and Spain were a touch higher approaching midday and ahead of Friday’s public holiday in the countries.

The second reading for eurozone GDP came in at 2.6% in third quarter on a year on year basis, above the previous estimate, a further sign of the currency Bloc's economic momentum.

The British pound remained under pressure on Thursday amid continuing lack of progress over Brexit negotiations ahead of Friday’s deadline.

House prices rose 3.9% in the three months to the end of November, compared to a 4.5% rise in the three months to the end of October. The month on month rise was 0.5%, higher than the 0.2% forecast by analysts and the previous month’s rise of 0.3%. FTSE 100 housebuilders were modestly higher in midmorning trading, maintaining the trend since the end of November Budget, which saw a range of measures designed to stimulate the housing market.

In takeover news, Ladbrokes Coral (LCL) shares rose nearly 25% as rival GVC Holdings (GVC) unveiled plans to buy the FTSE 250 company for around £3.9bn in a cash and shares deal. However, previous deal talks collapsed in the summer amid fears of a regulatory clampdown by the government on the gambling sector. GVC said that the deal price could be lower in there is an unfavourable outcome of the government’s review into controversial fixed-odd betting terminals.

Shares in packaging group DS Smith (SMDS), which has recently been promoted to the FTSE 100, rise nearly on first-half results. 

North America

Weekly jobless figures will be in focus today ahead of Friday’s non-payroll numbers. Yesterday’s ADP monthly figures were higher than expected.

Dell Technology (DVMT) reports before the US market opens.

In Canada, interest rates were left unchanged yesterday despite better-than-expected economic growth and jobs figures last week. 

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
Dell-VMWare Tracking Stock V77.25 USD1.79-
GVC Holdings PLC951.50 GBX-0.99-
Ladbrokes Coral Group PLC177.50 GBX-0.62-
Smith (DS) PLC521.50 GBX-0.10-
About Author

James Gard  is subeditor for Morningstar.co.uk