Asia
World markets continued to benefit from a dropoff in the nuclear rhetoric between the US and North Korea. Japanese investors reacted to Monday’s stronger than expected GDP data, with the Nikkei closing up over 1% at 19,753. Japan’s industrial production in June was up 5.5% year-on-year, against 4.9% in June.
Hong Kong’s Hang Seng was index was less than 0.3% lower at 27,174.96, while the Shanghai Composite index was up just 0.31% at 3706.06. Beyond the markets, the pressure on the North Korean regime has been continued by China banning imports of coal, iron ore and seafood from North Korea – implementing UN sanctions. China itself could be subject of sanctions after President Trump ordered a review of the Chinese approach to intellectual property, which has long been a bugbear for US governments.
Europe
Most European indices made modest gains amid a range of economic data. UK inflation was the standout, with CPI unchanged at 2.6%. The steadying in inflation rates pushed the pound lower against the dollar and euro. UK inflation is now higher than that of 10 other developed nations, including the US and Germany, but markets are not pricing in a rate rise in response.
Germany’s economy grew 0.6% in the second quarter – the UK was up just 0.3% in the same period - and Q1 numbers were revised up to 0.7%. The data gave some support to the Dax, as campaigning for the autumn elections in Germany begins in earnest.
On the FTSE 100, the biggest risers came from a variety of sectors. Defence giant BAE Systems (BA), rose nearly 2% to 591p after a broker upgrade. Newly merged fund company Standard Life Aberdeen (SLA) made a positive start, rising 1.9% to 432p.
Most European indices were up less than 0.5% by 11am BST.
North America
The Dow Jones Industrial Average closed just short of 22,000 on Monday, and analysts expect stronger retail sales data for July to help the index to breach this key level again. July’s output is expected to have risen by 0.4%, against a fall of 0.2% in June. Results from Home Depot (HD) today and Walmart (WMT) later in the week are likely to keep the US consumer in focus.
Other companies reporting on Tuesday are Dick’s Sporting Goods (DKS) and Urban Outfitters (URBN). In Canada, existing home sales for July are the standout data, while Quebec-based food distributor Metro (MRU) is set to report earnings.