Asia
Japanese and Australian stock markets were the best performing in the Asia-Pacific Region on Tuesday, boosted by the positive momentum from another record close on Wall Street overnight. Japan’s Nikkei was up 80 points at the close at 21,336.12, buoyed by carmakers and manufacturers, its highest level for 21 years.
Meanwhile the country’s Topix index is at highs last seen since before the financial crisis. The Chinese stock market was less bullish however, with the CSI 300 index little changed from the day before. It’s a key week for investors in China, with Wednesday’s Communist Party Congress and Thursday’s release of economic growth figures for September. Hong Kong’s Hang Seng index was also little changed on the day.
Europe
The FTSE 100 was just in positive territory in midmorning trading on Tuesday after a weaker start to the day. An increase in sterling after strong inflation data also held back leading shares. Contrasting trading statements from Pearson (PSON) and Merlin Entertainments (MERL) put the companies at the top and bottom of FTSE 100 companies: Pearson shares were over 6% higher at 662p, while shares in Legoland and Madam Tussauds owner Merlin crashed around 20% to 368p after it said revenue would be impacted by terrorism in London and bad summer weather.
UK inflation was also in focus after it hit a five-year high of 3% in September, exceeding the inflation target of 2% and increasing the odds of a November interest rate rise from the Bank of England. The Governor, Mark Carney, must now write a letter to the Chancellor explaining why the cost of living is above target. The Governor also faces MPs on the Treasury Select Committee today.
In Europe, Germany’s Dax struggled to make gains after ZEW surveys of showed a fall in economic optimism among leading companies.
North America
Goldman Sachs (GS) is the pick of the earnings announcements today. The investment bank is expected to report third-quarter earnings of $4.25 a share amid a backdrop of mixed performances so far from US banks. Johnson & Johnson (JNJ), like Goldman, releases earnings before market close. Entertainment group Netflix’s (NFLX) results after market close showed the company predicting $11 billion in revenues this year after a bumper third quarter.
In economics, US import and export prices for September will be in focus. Data will also be released on the housing market, manufacturing and industrial production.