Global market report - November 12

Energy stocks were boosted by news of Saudi Arabia cutting oil production, but overall stock markets lacked strong direction

James Gard 12 November, 2018 | 7:00PM

North America

 

US futures suggest a modest opening on Monday, but investors are in a period of limbo after the drama of the midterm elections and earnings season and before Thanksgiving next week.

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 and retail earnings are in view this week. Home Depot (HD) reports numbers on Tuesday and Walmart (WMT) on Thursday.

 

Europe

 

The UK pound is under pressure again this morning as Prime Minister Theresa May battles to keep her Brexit plan together. Recent levels above $1.30 for sterling seem a long way away now, with lows today of $1.27. Still, the FTSE 100’s dollar earners received a much needed boost, helping miners and oil companies to the top of the rankings. Oil stocks also bounced because of Saudi Arabia’s plans to cut oil production. BP (BP.) and Royal Dutch Shell (RDSB) were among the risers on Monday morning. The FTSE 100 pushed towards 7,200 points at the open but has since subsided as European indices drifted after a positive start.

British American Tobacco (BATS) was a heavy faller on the FTSE 100 on Monday.

This week sees key UK economic data released, with unemployment numbers on Tuesday and inflation on Wednesday.

Germany’s Dax is off under 1% to 11,447 points approaching midday.

Asia

 

China stock markets were the best performing in Asia-Pacific at the start of the trading week. The Shanghai Composite Index rose above 2,600 points with a gain of over 1% on Friday’s close. But the trend this year for the index has been of continuing weakness interrupted by shortlived rallies.

Hong Kong’s Hang Seng and Japan’s Nikkei 225 were slightly higher on the day.

 

About Author

James Gard

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