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.