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Global Market Report - October 2

Asia and European markets lost ground as the feelgood factor generated by the new NAFTA deal faded rapidly

James Gard 2 October, 2018 | 11:01AM

Global Market Report

Asia

The Hong Kong Stock Exchange re-opened after Monday’s holiday with a significant daily fall of nearly 2.5% or 662 points, to leave the Hang Seng at 27,126 at the close. The fall was also notable given the general positivity surrounding global markets after the resolution of new NAFTA talks.

Japan’s Nikkei 225 nudged higher after closing at a 27-year high on Monday.

Chinese stock market remained closed for the second of five public holidays.

Europe

Markets in Europe took their cue from Asia’s turn weaker rather than US markets’ upbeat close. The dominant indices, France’s CAC 40 and Germany’s Dax, were off around 1% approaching midday.

The FTSE 100 was also lower and remained below 7,500 points with some chunky falls from Royal Mail (RMG), Ferguson (FERG), Just Eat (JE.) and easyJet (EZJ).

North America

The Dow Jones closed up nearly 200 points on Monday as the goodwill associated with NAFTA helped US manufacturers such as Boeing (BA). The S&P 500 lagged behind the Dow in its gains and the Nasdaq actually slipped on the day. The US-based IMF warned that the global economy was already showing signs of slowing as a result of the protracted trade dispute between the US and China. The Fund is unlikely to spare its criticism of Trump’s trade policies when it releases its six-monthly forecasts for the world economy next week.

Non-farm payrolls for September are the highlight of this week’s economic calendar in the US. There is also services data from ISM on Wednesday.

In earnings, Pepsico (PEP) reports numbers today before the stock market opens.

Tesla (TSLA) shares were a touch softer in pre-market trading after yesterday’s dramatic rebound.

 

 

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
Boeing Co354.09 USD2.43
Ferguson PLC6,666.00 GBX0.82
Just Eat PLC777.00 GBX0.39
PepsiCo Inc137.36 USD0.75
Royal Mail PLC218.50 GBX2.25
Tesla Inc335.89 USD1.67

About Author

James Gard  is content editor for Morningstar.co.uk

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