Global Market Report - March 1

A recovery in China shares on hopes of an imminent trade deal set the tone for a stronger close to the week for global equity markets

James Gard 1 March, 2019 | 10:25AM
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Global Market Report

Asia

Markets in Asia-Pacific rebounded on the last trading day of the week, with China’s Shanghai Composite Index closing within touching distance of the key 3,000 points level. Reports of an imminent trade deal between the US and China, plus changes to MSCI weightings that favour China stocks, helped domestic equities.

After yesterday’s weaker China manufacturing data, the Caixin manufacturing PMI was stronger than expected, although the sector is still contracting.

Japanese equities were boosted by a drop in the yen to a 10-week low. The Nikkei moved up 1% on the day to 21,602 points.

Europe

Markets in Europe took their lead from Asia. German unemployment data was better than expected, while the jobless rate remained at 5%. Germany’s DAX was one of the better performers among Eurozone markets.

The FTSE 100 is higher on the last trading day of a bumpy week, and the index is set to close lower than Monday’s open.

WPP (WPP) was one of the biggest risers as investors focused on the upgraded outlook for 2019 rather than the drop in profits for 2018.

North America

US futures suggest a rise on Wall Street at the open after Asia’s bounce, which would reverse the mainly uncertain tone for most of the week.

As it’s the first of the month, ISM manufacturing figures for February are in view today. PCE data for December is also due, as is the University of Michigan Sentiment Index.

Looking ahead to next week, non-farm payrolls are the highlight of the US economics calendar. Canada’s central bank meets to decide interest rates, while Mexico inflation figures are released.

 

 

 

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About Author

James Gard  is content editor for Morningstar.co.uk