Asia
In a key week for political events in the region, with China’s Communist Party Congress on Wednesday and Japan’s election on Sunday, the region’s equity markets were mixed. While Japan’s Nikkei continued its recent winning streak, rising over 100 points to 21,255.56, China’s indices slipped back on news of an unexpected rise in producer price inflation from 6.3% in August to 6.9% in September.
The country’s consumer price index was steady at 1.6% year on year. China’s central bank chief Zhou Xiaochuan said that the Chinese economy could accelerate to hit 7% growth this year, defying expectations of a slowdown in the second half of the year.
Hong Kong’s Hang Seng index rose nearly 1% to 28,692.80, hitting a new post-financial crisis high.
Europe
Brexit continues to control the fortunes of sterling in the currency markets. The weekend’s news of a potential thawing in negotiations between UK and EU leaders has given a boost to the pound on Monday morning. That is usually the cue for a selloff of leading shares, but today the FTSE 100 inched towards a new intraday high of 7557 points, buoyed by a rise in mining stocks ahead of a trading updated from Rio Tinto (RIO). Antofagasta (ANTO), which is known for its copper production in Chile, was nearly 3% higher in morning trading. The latest record comes 30 years after Black Monday, when the index fell sharply to close at 2052.3 on Monday and 1801.6 on Tuesday October 20.
European indices were generally stable at the start of the new trading week, but Spain’s Ibex index was down nearly 1% at 10,189 in midmorning trading as the political crisis over Catalonia rumbles on. It is still uncertain whether the region has declared independence from Madrid and whether the central government will need to trigger “article 155” and impose direct rule on the regional government.
North America
US earning season continues with week with results from Nasdaq-listed Netflix (NFLX) today and investment bank Goldman Sachs (GS) on Tuesday. Stock markets hit yet more records on Friday but a rise in oil prices amid conflict in Iraq could limit further gains on Monday. Clashes between the Iraqi government and Kurdish forces in the key oil port of Kirkuk pushed WTI crude above $52 a barrel. Gold is also back above $1,300 an ounce after Friday’s disappointing US inflation numbers.