Welcome to the new morningstar.co.uk! Learn more about the changes and how our new features help your investing success.

Global Market Report - April 16 2019

Shanghai's stock market gained nearly 2.5% on Tuesday, while US investors await earnings from Bank of America and Netflix

James Gard 16 April, 2019 | 11:01AM

Global Market Report

Asia

Asia markets rallied today despite a softer close on Wall Street, with China’s Shanghai Composite surging nearly 2.5% on the day, reclaiming levels last seen in early 2018 before the big sell-off. Hong Kong’s Hang Seng closed up 1% on Monday’s levels.

China’s gross domestic product for the first quarter is on view this week and that will prove another test of the recent rally.

Europe

Germany’s DAX was the outperformer in the Eurozone today but could only manage daily gains of just over 0.5%. The country’s ZEW survey of economic expectations was much better than expected – a reading of 3.1 versus 0.8 forecast – but the survey of the current situation was worse than predicted.

Sterling softened slightly after employment and wage data was released, but these diary items – such as tomorrow’s inflation report – have much less of an impact now than Brexit developments, which have quietened down this week ahead of Easter. The FTSE 100 was up around 13 points to nearly 7,450 – the next technical level of 7,500 seems a stretch at the moment with European shares posting anaemic returns.

North America

Bank of America (BAC) continues the US earnings season today with a report before the market opens. Mixed earnings from Goldman Sachs (GS) were badly received by investors, who sold the stock off by nearly 4% at the close.

Netflix (NFLX) reports after the market closes – Morningstar currently rates the stock as one star, which means that it is significantly overvalued relative to its fair value.

Despite a softer close yesterday, US futures suggest a rise at the open on Tuesday after Asia’s gains. Crude oil inventories are due today and in terms of this week’s economics, the Federal Reserve’s Beige Book is released midweek, a few hours after Canada’s March inflation data. US retail sales are in view on Thursday.

 

 

 

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
Bank of America Corporation29.63 USD-0.64
Goldman Sachs Group Inc213.74 USD-0.69
Netflix Inc270.67 USD-5.56

About Author

James Gard  is content editor for Morningstar.co.uk

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites