Global Market Report - November 5

World markets were mixed as the new week brings US midterm elections, sanctions on Iran and ongoing fears over global trade

James Gard 5 November, 2018 | 11:04AM

Global Market Report

Asia

Last week’s trade-inspired rally proved shortlived as the United States and downplayed previous talk that a deal with China is imminent.

Xi Jinping’s speech to a Shanghai trade fair did not suggest that the two sides are even close to reaching agreement.

Hong Kong’s Hang Seng Index fell the most in percentage terms in the Asia-Pacific region, losing over 2% on Friday’s closing level and ended down over 500 points at 25,934.

China’s Shanghai Composite Index also lost ground but losses were more modest than in Hong Kong.

Japan’s Nikkei 225 also slid, despite the yen remaining stable against the dollar. The Bank of Japan Governor did, however, make more overtures towards “normalising” monetary policy.

Europe

Stock markets in Europe initially tracked Asia lower but managed to recover some ground approaching midday. The UK’s FTSE 100 moved out of negative territory as the pound lost momentum following weaker than expected services data. UK Prime Minister Theresa May is expected to present yet another Brexit deal to her Cabinet this week.

The UK’s economic growth is in focus this Friday after last week’s Budget. The economy is expected to have grown by 0.6% quarter on quarter in the three months to the end of September. The year on year gain is forecast to be 1.5%, against 1.2% the previous quarter.

North America

There are plenty of geopolitical headwinds facing the US and global economies in November, with midterm elections dominating the American political agenda and sanctions on Iran turning the focus on the oil market.

The Federal Reserve meets this week but is not expected to raise interest rates for the fourth time this year until the December meeting. Still, with strong employment numbers released on Friday, there is plenty of data to back a hawkish argument.

In terms of companies reporting, Booking (BKNG) and Canada’s Nutrien (NTR) release numbers today.

 

 

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
Booking Holdings Inc1,855.32 USD-1.78
Nutrien Ltd70.69 CAD0.34

About Author

James Gard  is subeditor for Morningstar.co.uk