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Global Market Report - October 2 2017

Japanese markets made a positive start to the month while European investors focused on political division in Spain

James Gard 2 October, 2017 | 10:58AM

Asia

The region’s stock markets started the new month and the fourth quarter of the year in reasonably upbeat mood, given the recent lack of threats from North Korea and yet another positive session on Friday in the United States equity markets. Japan’s Nikkei and Topix indices closed higher on Friday’s levels, helped by a manufacturing survey showing that business confidence was the highest in 10 years. China’s stock markets will be closed all week for national holidays. 

Europe

Global manufacturing surveys released on Monday were also in focus for European investors: the manufacturing PMI for the eurozone came in a touch lower than forecast at 58.1, while Germany’s was as predicted at 60.6. The eurozone unemployment rate for August came in at 9.1%, slightly above expectations, but the same level as the previous month.

In the UK, the FTSE 100 made strong start to the month, helped by listed airlines such as easyJet (EZJ) and BA owner International Consolidated Airlines Group (IAG), which gained on news that a budget rival, Monarch Airlines, had collapsed into administration.

Political troubles in Spain, after the weekend saw violent clashes over the Catalonia referendum, took a dent out of the main Ibex index, which was down over 1% at 10.527 approaching midday. The country’s problems also pushed the euro down against the dollar.

Germany’s Dax was resilient in the face of these pressures, particularly as the country’s manufacturing sector remains in robust health relative to other eurozone nations. 

North America

The US and Canada also see manufacturing surveys released for September. This week’s economic highlight will be Friday’s non-farm payrolls number, which is expected to show that the country added 77,000 new jobs in the last month. The corporate calendar is light on Monday but big US companies reporting this week include PepsiCo (PEP), Costco (COST) and Monsanto (MON).

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
Costco Wholesale Corp304.59 USD0.56
easyJet PLC1,294.50 GBX-0.77
International Consolidated Airlines Group SA542.20 GBX0.48
PepsiCo Inc133.33 USD0.03

About Author

James Gard  is content editor for Morningstar.co.uk

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