Global market report - February 6

European markets were under pressure today with more bad news from German industry, while the US dollar gained after the State of the Union speech

James Gard 6 February, 2019 | 7:00PM

North America

 

President Trump’s State of the Union Address divided politics watchers but pushed up the dollar. S&P 500 futures slipped back after a recent strong run for US equities.

Eli Lilly (LLY) and Twenty-First Century (FOXA) continue the earnings season.

In economics, US trade balance data for November is in view today, and is expected to show a deficit of $54 billion, a slight narrowing from the previous month. Crude oil inventories until February 1 will also be released.

Federal Reserve committee member Randal Quarles speaks on Bank Stress Testing today.  Weekly jobless claims are due tomorrow.

The Canadian unemployment rate for January is expected to creep up to 5.7%, from 5.6% in the prior month.

Mexico’s central bank is expected to hold interest rates at 8.25% on Thursday, while inflation figures for the country are due on the same day.

 

Europe

 

After yesterday’s gains, European markets were under pressure today. Recent weakness in sterling propelled the FTSE 100 to strong gains, but a recovery in the pound back above $1.30 has hit the index today. Nevertheless, daily losses of around 7 points are modest, and the FTSE 100 is still above 7,150 points.

Following on from annual results by online food retailer Ocado (OCDO) yesterday, its shares fell sharply today as a fire at its Andover site is more severe than first thought.

GlaxoSmithKline (GSK) updates the market at midday today.

The Bank of England meets this week and is expected to hold interest rates. Tomorrow’s quarterly inflation report will be closely watched, not least for clues on the next interest rate rise, but also for any growth downgrade. The IMF held its growth forecast for the UK in its latest World Economic Outlook, despite Brexit uncertainties.

Next week is a busy one for UK economic statistics, with UK GDP and inflation data due.

European markets were softer, with Paris and Frankfurt exchanges nursing modest losses. A slide in German manufacturing orders in December reinforces the view that Eurozone’s largest economy is heading into recession.

Asia

Japan’s Nikkei crept higher today but is still a way off the 21,000 points level. Hong Kong and China markets remain closed for Lunar New Year.


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James Gard

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