Global market report - January 28

Highlights of a very busy week for global affairs include the Federal Reserve meeting, a visit to the US from China trade delegates, a new Brexit vote and Apple earnings

James Gard 28 January, 2019 | 7:00PM

North America

US Government workers start returning to work this week but stock markets have largely shrugged off the potential economic disruption from the shutdown. Still, news of a breakthrough between the two sides helped equities close higher on Friday.

The Federal Reserve is set to meet this week for the first time this year, although no change to interest rates is expected. It’s a busy week for economics data, not least because the shutdown has held back some releases. US GDP is due on Wednesday, while Durable Goods Orders and Consumer Confidence figures on Tuesday. The US economy is expected to have expanded by 2.6% in the fourth quarter on an annualised basis.

Capping a busy week will be January’s non-farm payroll numbers on Friday.

This week the tech earnings season kicks off in earnest, with Apple (AAPL) releasing numbers after the closing bell on Tuesday. Microsoft (MSFT) reports on Wednesday and Facebook (FB) updates investors on Thursday.

Europe

Markets in Europe drifted lower after a mixed performance in Asia. This week sees yet another vote on Theresay May’s Brexit deal, with the pound rising against the dollar in anticipation of progress.

This week sees some FTSE 100 big guns report full year results, Shell (RDSB) and Unilever (ULVR).

Today Marks & Spencer (MKS) was on the up amid reports that it is planning to launch an online food delivery service with Ocado (OCDO).

European Central Bank chief Mario Draghi speaks before the European Parliament in Brussels today. German inflation numbers are due on Wednesday, as well as the country’s unemployment numbers. Eurozone GDP is due on Thursday amid fears of a slowdown in the currency bloc. Still, in the fourth quarter, the Eurozone is expected to have expanded by 1.2% on a year on year basis.

Asia

China’s Shanghai Composite Index dropped back below 2,600 points but the loss on Friday’s close was modest indeed.

This week Chinese Vice President Liu He visits Washington for more trade talks.

Japan’s Nikkei lost 124 points or 0.6% to 20,649, but the index is up around 1,000 points since the start of the year, in line with the global equity recovery. Today’s move higher in the yen stymied any move higher for domestic equities.

 

 

 

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James Gard

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