Global Market Report - August 21 2017

Markets continue their losing streak but commodity shares are tracking higher ahead of BHP Billiton's final year results

James Gard 21 August, 2017 | 11:43AM
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Asia

World stock markets resumed last week’s weaker trend on Monday morning, in the absence of any stronger signals from the geopolitical arena. A shift into defensive assets such as the yen and gold meant that Asian equities struggled to make gains.

Japan’s Nikkei and Topix indices were slightly lower, as was South Korea’s Kospi, while China’s CSI 300 and Hong Kong’s Hang Seng indices were just in positive territory. Japanese department stores sales down were down off 1.4% year on year.

Europe

Economic events and earnings report are thin on the ground on Monday, but the standout in the UK – and one which has global significance – is BHP Billiton (BLT), which reports full-year results. The earnings come after market close on Monday to coincide with Australian timing. From a UK investor, point of view, any announcement on higher dividends will be welcome, as it already pays a dividend of nearly 4%.

From a commodities point of view, investors will be keen to hear the views of the company on the sustainability of the copper price boom. The company’s shares rose over 0.5% in London to £13.58. Optimism over the earnings announcement lifted a raft of global mining companies such as Rio Tinto (RIO) and Antofagasta (ANTO).

European indices were modestly lower across the board – the FTSE 100 was off just 8 points at 7315, while the Euro Stoxx 5- was off 0.35% at 3433.80 points in midmorning trading. 

North America

Futures markets expect the Dow Jones and S&P to open lower on Monday. The planned central bankers’ meeting at Jackson Hole on Friday is providing the backdrop to market concerns over inflation, military conflict and terrorism

Banco de Chile (BCH) is one of the largest US listed companies to report on Monday. Industrial adhesives firm Nordson (NDSN) is producing its third-quarter results for 2018 after the Nasdaq closes. Data on Canadian wholesale sales for June, month on month, are due to be released. Canadian investors are braced for the start of the bank reporting season later in the week.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Antofagasta PLC1,808.50 GBX4.75
Banco De Chile ADR23.80 USD0.80Rating
Nordson Corp260.57 USD-1.43Rating
Rio Tinto PLC Registered Shares5,201.00 GBX3.13Rating

About Author

James Gard

James Gard  is senior editor for Morningstar.co.uk

 

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