Global Market Report - June 25

Further talk of punitive action on China by the Trump administration has rattled global markets

James Gard 25 June, 2018 | 10:52AM
Facebook Twitter LinkedIn

Asia

Markets in the region continue to bear the brunt of the global fears over a trade war, with China and Kong equities the focus for selling by investors. The Wall Street close on Friday was muted, with only the Nasdaq closing in the red. But talk over the weekend of new US scrutiny of China investments in key areas like technology sent the Hang Seng and Shanghai Composite down by more than 1% on Friday’s close. The Trump administration is threatening to use legal measures to restrict Chinese investments in robotics, aerospace and electric vehicles on the grounds of national security.

China central bank said it is planning to relax reserve requirements on some banks from next week in an attempt to increase liquidity in the banking system.

In Japan, a rebound in the yen against the dollar hit equity prices amid a global backdrop of weaker sentiment towards risky assets.

Europe

Stocks in the eurozone slid sharply, following Asia’s lead. Italy’s FTSE MIB was the worst performer in percentage terms, losing 1.6% in morning trading, with Germany’s DAX and Spain’s IBEX not far behind.

The picture was similar in the UK, where the FTSE 100 was off nearly 1% at 7614 points. In midmorning trading, 90 of the top 100 shares were in the red, with Micro Focus (MCRO) the biggest faller.

On the FTSE AllShare, estate group Countrywide (CWD) fell nearly 25% after the company’s third profit warning of the year.

North America

US markets look set to catch the wave of anxiety over escalating trade tensions. The Dow Jones is forecast to drop 150 points at the open, following on from a modest gain on Friday.

The Dow should end the quarter higher than at the start: it stood at 23,644 on April 2, against around 24,500 now, but the index has been above 25,000 points in the last three months.

In economics, US new home sales for May are in focus today, followed by June’s consumer confidence index on Tuesday.

A handful of big name brands report numbers this week, including Nike (NKE).

 

 

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.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Nike Inc Class B76.69 USD-0.09Rating

About Author

James Gard

James Gard  is senior editor for Morningstar.co.uk

 

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures