Global Market Report - November 23 2017

Chinese stock markets slumped as bond market volatility hit equities, while UK energy supplier Centrica lost nearly a fifth of its value after a profit warning

James Gard 23 November, 2017 | 11:00AM

Asia

After the strong gains made by Chinese shares earlier in the week, the main CSI 300 index abruptly went into reverse on Thursday, sliding nearly 3% to 4102 points. Bond market volatility, which saw a spike in yields, was blamed for the equity slump amid fears of higher corporate borrowing costs. The Chinese government, via the state news agency, made a point of signalling that shares in alcohol firm Moutai (600519) were overheating and the shares subsequently fell. Hong Kong’s Hang Seng index was also lower, shedding just under 1% to 29,707 points.

Japan’s stock markets are closed for a national holiday. 

Europe

Wednesday’s Budget downgraded UK growth forecasts for the coming years. Today’s data focused on the prior quarter for the economy – third quarter GDP grew by 0.4% quarter on quarter, exactly as forecast, and the same reading as the second quarter. The country’s Office for Budget Responsibility yesterday forecast that the UK would grow by 1.5% this year – against a forecast for above 2% in the spring Budget – and fall in subsequent years before rising again in 2022.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Centrica PLC46.63 GBX-2.00
Kweichow Moutai Co Ltd1,661.00 CNY1.59
Severn Trent PLC2,508.00 GBX-1.34

About Author

James Gard  is content editor for Morningstar.co.uk

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