Global Market Report - January 16 2018

US markets are expected to make a strong start to the trading week after Monday's holiday, and the Dow Jones could hit 26,000 points

James Gard 16 January, 2018 | 10:54AM


Markets in the Asia-Pacific region rose on Tuesday morning, even without an overnight push from record high levels on Wall Street. With a weaker yen boosting Japanese exporters this week, the country’s Nikkei index pushed towards 24,000 points, a level last seen in 1991. The Nikkei was the best performing index in the region, gaining 1% on the day, with China’s CSI 300 and South Korea’s Kospi not far behind. 


The fallout from the collapse of UK construction firm Carillion continues to dominate the news headlines and have an effect on listed companies in the same sector. Ordinarily, the collapse of a rival would give an immediate uplift to firms like Galliford Try (GFRD) and Balfour Beatty (BBY), but they both have told the market that they will take a hit from joint ventures with Carillion. The collapse of Carillion also casts a shadow over the once booming listed outsourcing sector.

In UK economics, inflation figures are the highlight of the week’s releases. As predicted, CPI inflation dipped to 3%, from 3.1% in November as rises in food prices eased. Still the figure remains 1% above the Bank of England’s target. The Bank is expecting inflation to ease into 2018 as the effects of the pound’s slide after the Brexit vote recedes. The retail price index, a broader measure of inflation that is often used to benchmark pay deals, was higher than expected at 4.1%.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Balfour Beatty PLC286.00 GBP0.00
Bank of America Corporation34.72 USD0.00
Carillion PLC14.20 GBP0.00
Citigroup Inc78.05 USD0.00
Galliford Try PLC170.00 GBP0.00
Goldman Sachs Group Inc237.33 USD0.00
Rio Tinto PLC4,201.50 GBP0.00

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James Gard  is content editor for

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