Global market report - February 12

Asia and European markets reacted favourably to news that a second US shutdown may have been averted, as well as rising hopes over current US-China trade talks

James Gard 12 February, 2019 | 7:00PM

North America

 

US stock futures advanced on Tuesday as the likelihood of another Government shutdown receded. China trade talks are ongoing, with China’s Vice Premier Liu He set to meet US delegates on Friday.

In economics this week, Wednesday sees the release of US inflation numbers, retail sales data is due on Thursday and the University of Michigan sentiment index on Friday. Annual growth in the US Consumer Price Index is expected to have moderated from 1.9% in December to 1.5% in January. While US job numbers continue to excel, inflation seems to be softening.

Cisco (CSCO) reports on Wednesday. Canada’s Manulife (MFC) is one of many firms listed on the Toronto Stock Exchange to report this week. Today TSX-listed Shopify (SHOP) releases earnings.

 

Europe

 

The FTSE 100, in line with Asia and Eurozone markets, rose on Tuesday, gaining around 25 points to 7,153. Gains in Eurozone markets were more substantial, with Germany’s DAX pushing around 1%V higher. The pound remains under pressure, falling below $1.29 today

Under-pressure retailer Debenhams (DEB) surged today after a new debt agreement gave the department store some financial breathing space.

Shares in Tui (TUI) slipped back after the travel company updated the market with its first quarter figures, which showed widening losses.

UK inflation is expected to have dropped back to the Bank of England’s 2% target in January, with figures released at 930am on Wednesday morning.

In terms of FTSE 100 companies reporting this week, some notable names include AstraZeneca (AZN) on Thursday and Royal Bank of Scotland (RBS) on Friday.

Asia

 

Rising trade hopes helped markets in Asia-Pacific maintain their post-holiday winning streak.

China’s CSI 300 closed up 0.7% to 3,330 points, meaning the index is up over 12% since the start of the year.

Japan’s Nikkei was the outperformer in the region, gaining over 2.5% on Friday’s close, following Monday’s public holiday.

Japan’s GDP figures are out this week. In the fourth quarter, the Japan economy is forecast to have expanded 0.4% on the previous quarter, against a contraction of 0.6% in Q3.

 

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James Gard

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