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On 20 January 2020 - Global markets declined in thin trading

Fidelity

Fidelity - Research team

The US market was closed on Monday for Martin Luther King, Jr. Day. European markets saw thin trading, while Asian stocks fell on concerns around a pneumonia outbreak in China.

European markets

European stocks slipped on Monday, following a record close last week and as US markets will be closed for Martin Luther King, Jr. Day. The Stoxx Europe 600 and the German DAX 30 index were both down 0.2%. The French CAC 40 fell 0.4% and the FTSE 100 slipped 0.2%.

The decline was led by the banks, pharmaceuticals and apparel and footwear sectors. Shares in Air France-KLM plunged after its shares were downgraded from outperform to neutral on expectations that its turnaround plan “will deliver limited benefits” at best. Encouragingly, shares in BAE Systems rose after the defense and security company said it would buy Collins Aerospace’s Military Global Positioning System and Raytheon’s Airborne Tactical Radios businesses.

On the economic front, the European Central Bank is expected to release its policy decision on Thursday, while a clutch of earnings are expected to be released on Tuesday.

Asia Pacific markets

Asian markets took a sudden plunge in early trading on Tuesday as mounting concerns about a new strain of pneumonia in China made investors risk averse. Consequently, safe-haven bonds and the Japanese yen edged higher.

The MSCI Asia-Pacific ex Japan slid 1% after a steady start, while the Hong Kong index fell 2% in early trading.

Japan’s Nikkei lost 0.8% and the Shanghai blue chips index slid 1.5%, as airlines were under pressure. The caution spread to E-Mini futures for the S&P 500 as well, which slipped 0.4%.

Looking forward

On Tuesday, the UK releases its labor market report for December, while the December Zew survey is on tap in Germany and Canada will release its manufacturing sales for November.

Global stock markets

 

Market

Close as at 20/01/2020

% change 20/01/2020

Net change

US

US: Dow Jones**

29348.1

0.00

0.00

US: S&P 500**

3329.6

0.00

0.00

Nasdaq: NASDAQ**

9388.9

0.00

0.00

Europe

MSCI Europe

1719.4

-0.10

-1.69

UK: FTSE All Share

4245.6

-0.29

-12.36

UK: FTSE 100

7651.4

-0.30

-23.12

Germany: DAX

13548.9

0.2

22.81

France: CAC 40

6078.5

-0.36

-22.18

Netherlands: All Share

889.7

-0.09

-0.76

Italy: S&P MIB

24002.5

-0.57

-138.62

Switzerland: SMI

10846.3

0.04

4.47

Spain: IBEX 35

9658.8

-0.23

-22.50

Sweden: OMX

1821.3

-0.25

-4.65

Asia

Japan: Nikkei

24083.5

0.18

42.25

MSCI Asia Pacific ex Japan

635.9

-0.20

-1.29

Hong Kong: Hans Seng **

28795.9

-0.90

-260.51

Australia: S&P/ASX 200

7079.5

0.22

15.40

China: Shanghai Shenzhen 300

4185.8

0.75

30.98

Note: all releases are listed in local time.

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