Global Market Report - August 14 2017

Japan's GDP smashes forecasts, European markets enjoy a relief rally, and North American Free Trade talks start 

James Gard 14 August, 2017 | 11:21AM
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Much stronger than expected Japanese economic growth figures dominated off the global business agenda at the start of the week. An easing in military tension between the US and North Korea helped restore some calm to trading on Monday.

Asia

Japan’s GDP was up 4% on an annualised basis, making it the best performing G7 country in the second quarter, beating forecasts of a 2.5% rise. The rise in domestic business spending was double forecasts at 2.4%. Nevertheless, the strong data did not impress the market too much: the Nikkei 255 closed nearly 1% lower at 19,537, at similar levels to the start of the year.

China’s Shanghai Shenzhen CSI 300 Index responded better to domestic numbers, rising 1.3% to 3,694.68. July retail sales were 10.4% higher than in 2016, and industrial production was 6.4% higher in the same period – although both figures were below analysts’ forecasts. In Australia, scandal-hit Commonwealth Bank (CBA) said its chief executive Ian Narev will step down next year, and the shares rose 1% to AUD 81.31.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Commonwealth Bank of Australia105.97 AUD0.83Rating
Ford Motor Co15.94 USD-0.38Rating
General Motors Co57.37 USD-0.68Rating
NatWest Group PLC234.30 GBX0.99Rating
Standard Chartered PLC495.50 GBX1.31Rating
Standard Life Aberdeen PLC261.10 GBX1.63

About Author

James Gard  is content editor for Morningstar.co.uk