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Global Market Report - April 17, 2018

US earnings season has set the tone for a positive mood in global markets so far this week

James Gard 17 April, 2018 | 11:02AM

Asia

Markets in the region again put in a mixed performance on Tuesday, despite positive encouragement from Wall Street, and again China and Hong Kong shares were the worst performers in percentage terms. Technology companies in the region were the worst hit as the US stepped up its interventionist stance towards China’s ZTE. China’s GDP grew as expected by 6.8% in the first quarter and retail sales were higher than forecast; industrial production, however, lagged expectations.

With the dollar-yen stuck in a range between 107 and 107.1 since the start of this week, Japan’s equity markets could manage only minor advances.

Europe

UK and eurozone exchanges followed the lead of the US overnight by posting modest increases – the FTSE 100 edged above 7,200 points by midmorning trading, helped by a reversal in the rise of the British pound.

Ahead of the pay and jobs numbers, which showed a new record for employment and average weekly earnings rising by 2.8% in the three months to February, sterling pushed to a post-Brexit vote high against the dollar, before dropping back again. Currency traders are braced for Wednesday’s inflation number, which is expected to show the cost of living rising 2.7% in the year to March 2018.

North America

Despite Asia’s stumbles, US markets are expected to rise again on Tuesday, helped by a positive start to earnings season – Nasdaq-listed Netflix (NFLX) posted stronger earnings after the market closed on Monday and its shares are expected to bounce higher on Tuesday. Goldman Sachs (GS) reports before the market opens on Tuesday, in the wake of positive earnings from Bank of America (BAC) yesterday and JPMorgan on Friday (JPM).

Futures markets point to a 100 point gain in the Dow Jones at the open.

Tomorrow sees the Bank of Canada make its interest rate decision.

 

 

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Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Rating
Bank of America Corporation30.19 USD0.00
Goldman Sachs Group Inc239.12 USD-1.39
JPMorgan Chase & Co109.51 USD-0.82
Netflix Inc303.72 USD-1.07
About Author

James Gard  is subeditor for Morningstar.co.uk