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Global Market Report - February 1

World markets were mixed ahead of crucial US jobs numbers, but China shares gained and the UK's FTSE 100 pushed through 7,000 points

James Gard 1 February, 2019 | 10:54AM

Global Market Report

Asia

China’s Shanghai Composite Index pushed above 2,600 points on the last trading day before Chinese New Year, which keeps the domestic stock market closed for five days next week. The bounce was despite a mixed closed on Wall Street and a weaker-than-expected outturn for the Caixin manufacturing purchasing managers’ index (PMI).

Hong Kong’s Hang Seng slipped slightly on Thursday’s close but it has a been a positive week and month for the tech-biased index.

Europe

The FTSE 100 nudged above 7,000 points this morning, a level its has been attempting to breach all week, but the daily gain is still under 0.5%. The UK index has been supported by the rebound in global equity prices in January, but has failed to break above 7,000 because of the stronger pound.

Yesterday’s news that Italy had entered recession in the last quarter dented domestic shares on Thursday, with the FTSE MIB sliding back from nearly 20,000 to around 19,500 points. But the index made an attempt at a recovery today.

North America

Tech earnings season has largely lifted the stocks of Apple (AAPL) and Facebook (FB), but Amazon (AMZN) proved the exception. Its shares slid in after-hours and pre-market trading as it warned of slower growth in the first quarter of this year despite a 203% rise in operating profit for the year as a whole and a 31% rise in revenue. This is a classic case of investors looking past strong historical data and fretting about the outlook.

US stocks had a strong January but there is a sense of flagging momentum entering into February, as investors seek concrete news from US-China trade talks. The S&P 500 had its best January in 30 years, and the Fed’s caution and broadly supportive earnings season. US stock futures suggest a mixed open for the Dow, S&P, and NASDAQ today.

Non-farm payrolls are one of the highlights of the global economic calendar today. The US economy is expected to have added 165,000 jobs in January, down from the 312,000 jobs created in December.

Exxon Mobil (XOM) and Chevron (CVX) report earnings today. 

 

 

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
Amazon.com Inc1,741.88 USD-0.62
Apple Inc262.59 USD-1.39
Chevron Corp117.47 USD0.87
Exxon Mobil Corp68.13 USD0.46
Facebook Inc A196.80 USD-1.27

About Author

James Gard  is content editor for Morningstar.co.uk

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