Global Market Report - January 9

World equities were stronger on Wednesday amid rising optimism over US-China trade talks

James Gard 9 January, 2019 | 10:52AM

Global Market Report

Asia

The Hong Kong stock market was the outperformer in Asia-Pacific on Wednesday as rising optimism over a trade deal buoyed global equities. The Hang Seng index rose by over 500 points or 2.2% to move back above 26,000. South Korea’s Kospi was not too far behind in percentage terms.

A rise in on Wall Street overnight helped Asian equities start strongly, with Japan and Chinese markets also benefiting. After a tricky December, in line with most global markets, the Shanghai Composite Index has mounted a tentative recovery so far this January.

Europe

Markets in Europe gained ground again as part of the global resurgence. France’s CAC 40 was just out in front in percentage terms approaching midday.

The FTSE 250 was stronger than the FTSE 100 in percentage terms. The FTSE 100 nudged back above 6,900 points with a near 6% gain in housebuilder Taylor Wimpey (TW) after a positive market update. Supermarket Sainsbury’s (SBRY) was one of the losers after reporting a fall in sales during the Christmas trading period.

North America

US stock futures point to a small rise at the open as trade talks between US and China enter their third day.

Federal Reserve minutes are due today from the last meeting of 2018, when interest rates were raised by another quarter point, the fourth such rise of the year. Fed chairman Jerome Powell, who locked horns with Donald Trump at the end of last year, will speak before The Economic Club of Washington after the stock market opens on Thursday.

In Canada, the central bank is today expected to hold interest rates at 1.75%, below the US but still one of the highest in the developed world.

Friday’s highlight is US inflation data for December, which is expected to show a drop in the rise in the cost of living from 2.2% in November to 1.9% in December – a drop below the Fed’s inflation target.

Cogeco Communications (CCA) is one of the largest Canadian companies to report this week, with earnings due on Thursday.

WTI crude oil futures moved above $50 per barrel with a gain of over 2%.

 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Sainsbury (J) PLC277.90 GBX2.36
Taylor Wimpey PLC167.20 GBX3.21-

About Author

James Gard  is subeditor for Morningstar.co.uk