Global Market Report - March 5

China markets moved higher as the Government promised more stimulus in its annual report, while US stock futures point to a modest rise at the open on Tuesday

James Gard 5 March, 2019 | 10:43AM
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Global Market Report

Asia

After breaking through 3,000 points yesterday, the Shanghai Composite Index pushed higher, closing up nearly 1% at 3,054 points. Shenzhen’s Component Index was even higher in percentage terms, gaining over 2% to 9,505 points.

The gains game despite the lack of concrete news on a China-US trade deal, and mixed reports from the Chinese Government’s Work Report. The GDP growth target is now in a range between 6% and 6.5% for 2019, effectively a lowering of the more precise 6.5% target. The Government has promised to cut taxes and boost lending to fight the “tough economic battle” ahead.

According to the Caixin PMI survey, the Chinese services sector is still expanding – unlike the manufacturing sector – but the index came in below forecasts at 51.1.

Europe

Markets in Europe were mixed despite gains in Asia. The UK’s FTSE 100 was modestly higher after dropping into the red early on. UK services sector data was better than expected and sterling is stronger today against major currencies.

In mid-morning trading German and French indices were largely unchanged.

North America

US stock futures suggest a modest rise at the open as investors await concrete developments on a possible trade deal.

Retailer Target (TGT) reports today, while Costco (COST) releases numbers on Thursday after the closing bell. Canadian Natural Resources (CNQ) reports earnings on Thursday.

The ISM non-manufacturing/services composite index will be released after the market opens on Tuesday.

Friday’s US non-farm payrolls are the highlight of the economics calendar this week. The US economy is expected to have added 185,000 jobs in February, lower than the 304,000 posts added in January.

 

 

 

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James Gard  is content editor for Morningstar.co.uk