Skip Header

On 17 February 2020 - Global markets were mixed in thin trading

Anne D Picker

Anne D Picker - Econoday

The US market was closed on Monday for Presidents Day. European markets advanced as China implemented additional measures to limit the fallout from the novel coronavirus outbreak. Asian markets were mixed.

European markets

European stocks advanced on Monday, supported by China’s moves to limit the fallout from the novel coronavirus outbreak. The Stoxx Europe 600 advanced 0.33%, while the FTSE 100 rose 0.3%.

Shares in French automobile parts company Faurecia surged as it expects to outperform global automotive production by 1 to 2 percentage points this year, which is stronger than its previous forecast of 1 to 1.5 percentage point outperformance. Shares in Bayer and BASF fell as the companies were ordered to pay a higher-than-expected settlement amount related to damages from their herbicide.

UK markets were boosted by gains at HSBC Holdings, oil giant BP and miner BHP Group. Shares in Jupiter Fund Management also advanced as it agreed to buy fund management group Merian Global Investors. The deal is expected to be earnings accretive by 2021. Conversely, shares in Tullow Oil slumped as it announced that it would abandon a well in offshore Peru. The company is, however, still positive about Peru’s wider offshore potential.

Asia Pacific markets

Asian markets were mixed on Monday, with Japan’s benchmark slipping after the government reported that the economy contracted 6.3% in annual terms in the last quarter.

The Shanghai Composite index jumped 2.2% after policymakers announced a slew of measures to support the economy as the country battles the novel coronavirus outbreak. China’s central bank stepped in to help the economy with a rate cut, further security purchases and tax cuts. The People’s Bank of China lowered interest rates for medium term loans from 3.25% to 3.15%, the lowest since 2017. The central bank also added 100 billion yuan of funds via 7-day reverse repurchase agreements. China’s finance minister also said the country is planning targeted tax cuts and said it would provide 8 billion yuan in a second round of support for virus prevention and control efforts.

The Japanese Nikkei 225 was down 0.6%, while the Topix slid 0.89%. The Japanese economy shrank at an annualized pace of 6.3% in the three months ended December, according to data released by the Cabinet office. The contraction in the world’s third-largest economy reflects the impact of typhoons, trade tensions and crimped consumer spending. The seasonally adjusted economic data was announced as Prime Minister Shinzo Abe faces pressure over spreading cases of the novel coronavirus and as markets around the region see a mounting toll from its impact on travel and tourism, as authorities strive to contain the outbreak.

Meanwhile, Sydney’s S&P ASX/200, South Korea’s Kospi, and the Jakarta index finished flat. The Taiwanese and Singaporean markets slid 0.89% and 0.56%, respectively, while Hong Kong’s Hang Seng index rose 0.5%

Looking forward

On Tuesday, Germany releases the ZEW Survey for February, while January’s Labor Market Report is on tap in the UK. The Housing Market Index data for February is slated for release in the US.

Global stock markets

 

Market

Close as at 17/02/2020

% change
17/02/2020

Net change

US

US: Dow Jones**

29398.1

0.00

0.00

US: S&P 500**

3380.2

0.00

0.00

Nasdaq: NASDAQ**

9731.2

0.00

0.00

Europe

MSCI Europe

1731.9

0.28

4.88

UK: FTSE All Share

4147.1

0.29

12.03

UK: FTSE 100

7433.3

0.33

24.12

Germany: DAX

13783.9

0.3

39.68

France: CAC 40

6086.0

0.27

16.60

Netherlands: All Share

904.1

0.05

0.48

Italy: S&P MIB

25120.5

1.02

253.53

Switzerland: SMI

11168.5

0.36

39.64

Spain: IBEX 35

10022.2

0.66

65.40

Sweden: OMX

1888.4

0.14

2.73

Asia

Japan: Nikkei

23523.2

-0.69

-164.35

MSCI Asia Pacific ex Japan

625.5

0.13

0.82

Hong Kong: Hans Seng **

27959.6

0.52

144.00

Australia: S&P/ASX 200

7125.1

-0.07

-5.10

China: Shanghai Shenzhen 300

4077.4

2.25

89.69

Note: all releases are listed in local time.

Important Information

This information is for Investment Professionals only and should not be relied upon by private investors. It must not be reproduced or circulated without prior permission. Fidelity/Fidelity International means FIL Limited and its subsidiary companies. Unless otherwise stated, all views are those of Fidelity. Fidelity International only offers information on products and services and does not provide investment advice based on individual circumstances. Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited.  Issued by FIL Investments International (FCA registered number 122170) a firm authorised and regulated by the Financial Conduct Authority. FIL Investments International is a member of the Fidelity International group of companies and is registered in England and Wales under the company number 1448245. The registered office of the company is Oakhill House, 130 Tonbridge Road, Hildenborough, Tonbridge, Kent TN11 9DZ, United Kingdom. Fidelity International’s VAT identification number is 395 3090 35. IPGSSO0251/NA.