Global Market Report - February 13

Markets across the world were boosted by positive messages emanating from this week's US trade delegation's visit to Beijing

James Gard 13 February, 2019 | 10:51AM
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Global Market Report


China’s winning streak has now hit the three-day mark, helped by another strong performance on Wall Street overnight. The Shanghai Composite Index is now up over 100 points since the return to trading after Chinese New Year, and now stands above 2,700 points. The index still has some way to go before moving back above 3,000 points, the level it breached last summer when China entered a bear market.

Both Hong Kong’s Hang Seng and Japan’s Nikkei were up 1% on yesterday’s close.

Japanese GDP is due tomorrow morning local time.


The UK inflation rate for January was softer than expected, with the Consumer Price Index rising by 1.8% on the same month last year on lower energy bills after a price cap was introduced by Ofgem. That means that inflation is now below the Bank of England’s 2% target and was last at this level in 2016. This takes some pressure off the Bank of England, although Brexit’s effect on growth overshadows any inflation concerns. But this at least allays concerns that sterling’s depreciation since the Brexit vote has led to imported inflation.

Despite 1% gains in the US and Asia, rises in Europe were more modest. The FTSE 100 was up 32 points to 7,165. Approaching midday, Germany and France indices were just positive after early gains faded.

Amsterdam-listed Heineken (HEIA) released full-year results that pushed up the share price by 5%. Investors were cheered by a rise in revenues and profits and a near 9% hike in the full-year dividend.

In terms of FTSE 100 companies reporting this week, some notable names include AstraZeneca (AZN) tomorrow and Royal Bank of Scotland (RBS) on Friday. Both report full-year numbers.

North America

Futures suggest another rise on the US stock market on Wednesday, fuelled by rising optimism over trade talks. President Trump’s comment that the March deadline for new tariffs could be delayed has inspired another leg higher for world markets after a pause in early February.

US inflation for January is in view today and is a highlight of this week’s economics calendar. CPI is expected to have risen by 1.5% in January, down from 1.9% in December.

Cisco (CSCO) is one of the biggest companies in the world to report earnings today, and this is after the stock market closes. In Canada, Manulife (MFC) also reports after the market close.

Coca-Cola (KO) also reports on Thursday.




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James Gard  is content editor for