Global Market Report - October 20 2017

FTSE 100 banks and miners benefited from sterling weakness on Friday morning, while in the US investors are looking ahead to numbers from General Electric and Procter & Gamble

James Gard 20 October, 2017 | 11:07AM
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Asia

Japanese equity indices managed to maintain their winning streak on Friday, the last trading day before the general election, helped by another rise in Wall Street. However, the gains were very slim, with the Nikkei and Topix indices closing around 0.04% higher than on Thursday.

Chinese markets were softer again and the CSI 300 closed below 4,000 points. Hong Kong’s Hang Seng index managed to break its losing pattern and ended the week with a day-on-day gain of over 1%. Nevertheless, at 28,487.24, the index is still a few hundred points lower than at the start of the week. 

Europe

Brexit-inspired weakness in sterling helped give FTSE 100 dollar earners such as banks and miners a boost on Monday morning, keeping the index just below record high levels set earlier this week.

Companies such as Antofagasta (ANTO), Anglo American (AAL) and Rio Tinto (RIO) were among the big winners on Friday morning. Consumer goods firm Unilever (ULVR) was lower again today after falling sharply on Thursday following a weaker third-quarter trading update.

In economics, the UK’s budget deficit for September was the lowest for 10 years, at below £6 billion, much lower than forecasts.

European indices in France, Germany and Italy were marginally higher in midmorning trading, but again Spanish markets were softer amid ongoing political concerns.

North America

In a crowded week for earnings announcements, Friday also sees some big corporate names reporting. Dow Jones Industrial Average stalwart General Electric (GE) releases numbers before the market opens, as does consumer goods giant Procter & Gamble (PG), a global rival to FTSE 100-listed Unilever, which reported yesterday. After market close last night, online payments firm Paypal (PYPL) reported better-than-expected earnings for the third quarter and lifted its target for mobile payments for the rest of the year.

In Canada, inflation numbers for September are the highlight. The country, which is forecast by the IMF to grow the most quickly among G7 nations this year, is expected to have seen inflation grow by 1.7% in September – on a year-on-year basis – higher than the 1.4% rise in the cost of living in August.

In the US, existing home sales data for September will be released. After market close, Federal Reserve chair Janet Yellen will give a speech on monetary policy since the Financial Crisis.

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
Anglo American PLC2,232.00 GBX0.54Rating
Antofagasta PLC1,636.50 GBX0.86
General Electric Co183.56 USD0.50Rating
PayPal Holdings Inc87.31 USD1.05Rating
Procter & Gamble Co166.58 USD0.45Rating
Rio Tinto PLC Registered Shares4,748.50 GBX0.07Rating
Unilever PLC4,515.00 GBX0.04Rating

About Author

James Gard

James Gard  is senior editor for Morningstar.co.uk

 

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