Global market report - November 13

World markets showed resilience in the face of US tech stock volatility, with rising hopes over trade boosting sentiment

James Gard 13 November, 2018 | 7:00PM

North America

 

US bond markets re-open day after a pause for Veterans’ Day yesterday. Dow futures initially point to a recovery after yesterday’s 2%+ fall.

$200 billion retail giant Home Depot (HD) releases earnings before the market opens, while Walmart (WMT) reports on Thursday.

Inflation is the standout economic number this week, with a rise to 2.5% expected for October on the CPI measure. Excluding the volatile elements of food and energy, CPI is forecast to have remained stable at 2.2% for the last month.

Retail sales data is due on Thursday this week for October as the country build up for the key Thanksgiving shopping season.

 

Europe

 

Markets in Europe took their cue from Asia rather than last night’s US downturn, with gains across major indices in Germany, France, Spain and the UK – although Italy was softer on the day.

Vodafone (VOD) led the FTSE 100 after half-year results. The telecoms company made a loss of nearly 3 billion in the period, but this was due to impairments in its Spanish market. Vodafone actually raised its full-year outlook in releasing these results.

The FTSE 100 was up just 14 points in midmorning trading to 7,067 points, so the index is not too far from breaching the 7,000 level if sentiment turns again.

Currency markets are poised for some Brexit news today as talks once again enter a “crunch” phase.

Asia

 

Japan was the only major Asia-Pacific stock market to track the sharp downward moves on Wall Street, with the Nikkei 225 dropping 2% despite a weakening in the yen against the dollar.

The drop on the Nasdaq overnight, which created a ripple effect across Asia’s Apple suppliers, was balanced by signs of progress in trade talks.

Hong Kong’s Hang Seng, which usually follows falls on the tech-focused Nasdaq closely, actually ended the day in positive territory.

China’s CSI 300 was up 1% on the day, driven by gains in the Shenzhen stock market.

About Author

James Gard

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