Global Market Report - August 22

US stock markets are expected to react to the legal drama engulfing the Trump presidency

James Gard 22 August, 2018 | 10:59AM
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Global Market Report

Asia

China’s attempt at a modest stock market recovery stalled in the middle of the week as the Shanghai Composite Index drifted lower again. Shenzhen lost more than Shanghai in percentage terms. Hong Kong stocks rose, however, helped by stronger results from insurance company Ping An (02318). Both Hong Kong’s Hang Seng and Japan’s Nikkei were up around 0.6% on the day, helped by continued strength on the tech-focused Nasdaq.

Later in the week, Japanese inflation will be in focus: the Consumer Price Index is expected to have risen by 1% in July on the same month a year ago, from 0.7% the month before. Central bankers in Japan will welcome any signs of inflation recovering, albeit modestly.

Europe

Markets in the Eurozone started reasonably brightly had had started to wilt approaching midday, but the FTSE 100 attempted a recovery after a weaker start. Yesterday’s outperformer Persimmon (PSN), which reported higher profits, gained ground again on Wednesday.

European Central Bank meeting minutes from July’s meeting will be released on Thursday, as well as manufacturing and service surveys for Germany, France and the entire Eurozone.

North America

The S&P 500 hit a new record high during Tuesday’s trading session but US markets are expected to open weaker on Wednesday as traders assess the likely impact of the legal drama engulfing the White House.

The Federal Reserve minutes from the August FOMC meeting will be released today, although these will likely be overshadowed by chairman Jerome Powell’s speech at the Jackson Hole meeting of central bankers. The speech will be on Friday and is likely to address some of President Trump’s concerns that the Fed is tightening too quickly.

Weekly jobless claims will be in view on Thursday as well provisional readings of the Markit services and manufacturing indices for August.

Royal Bank of Canada (RY) reports earnings today, as does US retailer Target (TGT). Chinese retail giant Alibaba (BABA) reports on Thursday.

 

 

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James Gard  is content editor for Morningstar.co.uk