Global market report - March 1 2019

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 | 7:00PM

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. Talk of an imminent trade deal announcement has helped China stocks, and that has rippled out to the rest of the world.

Canada's GDP data is due today for December, with forecasts for a 1.4% rise.

In the US, 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.

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.

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.

After yesterday’s weaker China manufacturing data, the Caixin manufacturing PMI was stronger than expected, although the sector is still contracting. Changes to the MSCI index, with a boost to the China weighting, also helped sentiment already buoyed by trade hopes.

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.


 

About Author

James Gard

James Gard  James Gard is subeditor for Morningstar.co.uk.