Asia
Japan was the standout market in an otherwise weaker Asia-Pacific region, as a falling yen perked up a recently listless domestic equity market. China and Hong Kong shares were weaker again, although the Shanghai Composite Index’s losses were modest. Trade tariffs and military manoeuvres between Russian and China on the negative side vied with the potential for another meeting between President Trump and North Korea’s leader Kim Jong Un. Having seen off the nuclear threat in the region, for the time being, Chinese investors are sizeing up the potential economic threat of a drawn-out trade war.
Europe
Once again, the UK pound has risen against the dollar on rumours of Brexit progress, but the currency has been in this position before and the “Barnier boost” has faded. Still, sterling is above $1.31 and the FTSE 100, which is full of dollar earners, has weakened. The blue-chip index is down nearly 50 points on the day and is not far off falling through the 7,200 points level. Surrey-based equipment rental firm Ashtead Group (AHT) was top of the FTSE 100 as results showed profits boosted by growing demand and a weaker pound.
Miners were among the losers as the currency boost worked against them.
European exchanges started relatively brightly but lost ground as midday approached.
While the UK unemployment rate remained steady at 4%, there was some good news for British workers with an increase in wages for the three months to July.
North America
NAFTA negotiations between the United States and Canada resume today.
Tech stocks managed to snap their losing streak yesterday and while the S&P 500 rose slightly, the Dow Jones closed down on Monday.
US inflation for August is one of the highlights of the economic calendar this week, with data released on Thursday. The Consumer Price Index is expected to have risen by 2.8% in August, against a yearly rise of 2.9% in July. Canada’s CPI number for August is due to next week.
Retail sales for August will also be in view on Friday.
