Global Market Report - November 20 2017

German political anxieties unsettled European equities, while US and Japanese investors are braced for a shortened trading week

James Gard 20 November, 2017 | 10:54AM

Asia

Markets in the region were mixed on Monday in the absence of any strong drivers from either the recently record-breaking US markets or from the global macroeconomic picture. Japan earnings are light this week ahead of Thursday’s Labour Thanksgiving Day – or Harvest Festival. The main indices, the Nikkei and Topix, were modestly lower, following Wall Street’s lead. The Nikkei, at 22,261, is around 1,000 points off the 25-year high recorded just two weeks ago. Hong Kong’s Hang Seng and China’s CSI 100, in contrast, ended the day in positive territory. 

Europe

Investors in the region had assumed that German politics would be not be a concern after Angela Merkel’s emphatic re-election at the end of September. But as coalition talks collapsed over the weekend, the prospect of political instability returned. Germany’s Dax was trading below 13,000 points on Monday morning, a few hundred points below recent record highs.

As a result, currency investors initially bought sterling at the expense of the euro, which hit FTSE 100 shares on the first trading day of the week. A strong fightback by the euro against the pound then gave the UK index more support in midmorning trading.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barratt Developments PLC473.90 GBX-5.03
Persimmon PLC2,496.00 GBX-0.83
Urban Outfitters Inc21.90 USD-3.14

About Author

James Gard  is content editor for Morningstar.co.uk

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