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On 21 January 2019 - Fidelity International Global: Investors traded cautiously

Anne D Picker

Anne D Picker - Econoday

In addition to earnings reports, they are concerned about global growth.

US markets

US markets were closed January 21 for Martin Luther King Jr Day.

European markets

European markets were lower Monday. Traders were largely treading cautiously amid concerns about global growth after China's fourth quarter growth slowed to its slowest pace since 1990. The FTSE was up 2.26 points, the CAC declined 0.2 percent, the DAX retreated 0.6 percent and the SMI slipped 0.1 percent.

Investors were following the Brexit developments and remained concerned about the impact of the ongoing government shutdown in the US as well as the ongoing uncertainty about the US and China striking a long term deal anytime soon.

Henkel declined after the company warned earnings would fall this year as it steps up investment in brands and digital technology to try to revive growth. The company announced plans to spend about an extra €300 million a year, on top of annual capital expenditure of around €800 million.

Deutsche Telekom retreated following a brokerage downgrade. RWE ended lower while Wirecard, Vonovia and Adidas posted solid gains. Atos, Bouygues, Carrefour and Société Générale retreated while Louis Vuitton, Danone and Airbus Group advanced. In the UK, Kingfisher, Antofagasta, Centrica and Intu Properties declined. Dixons Carphone, Hargreaves Lansdown, DCC, AstraZeneca and Capita were higher.

Asia Pacific Markets

Stock indices were mostly higher Monday — weak Chinese fourth quarter GDP data spurred hopes that authorities will pursue more stimulus to support growth. Investors also were cheered by media reports suggesting that China had offered to buy more American goods through 2024 to eliminate its trade imbalance with the US. The Shanghai Composite and Hang Seng were up 0.6 percent and 0.4 percent respectively.

China's fourth quarter GDP grew a seasonally adjusted 1.5 percent on the quarter, down from 1.6 percent in the third quarter. From a year ago, GDP expanded 6.4 percent as expected, down from 6.5 percent in the third quarter. December industrial production climbed 5.7 percent on the year while retail sales were up an 8.2 percent. Fixed asset investment gained 5.9 percent on the year, unchanged from the November reading.

The Nikkei was up 0.3 percent and the Topix was 0.6 percent higher. Toyota Motor and Panasonic jumped after reports that they plan to launch a joint venture in 2020 to manufacture batteries for electric vehicles. Mitsui OSK Lines and Kawasaki Kisen along with Lixil Group advanced.

Both the S&P/ASX and All Ordinaries were up 0.2 percent. ANZ, NAB and Westpac advanced along with insurer Insurance Australia Group. Santos and Oil Search gained ahead of their quarterly production reports, due this week. Woodside Petroleum and Origin Energy also closed higher as oil prices remained supported by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC allies, including Russia. Gold miners Newcrest and Evolution fell as rising equity markets and a firmer dollar dented the appeal of the precious metal.

The Kospi inched up 0.33 point as investors awaited further developments regarding US/China trade talks. The Sensex added 0.5 percent, rising for the fifth consecutive session.

Looking forward

The Eurozone will release its fourth quarter ECB lending survey. The UK releases its December labour market report. Germany releases January ZEW survey. The US posts December existing home sales.

Global Stock Markets

 

Index

21 Jan 2019

Daily Change

% Change Daily

North America

 

 

 

 

United States

Dow

*

*

*

 

NASDAQ

*

*

*

 

S&P 500

*

*

*

Canada

S&P/TSX Comp

15354.16

50.33

0.3

Europe

 

 

 

 

UK

FTSE 100

6970.59

2.26

0.0

France

CAC

4867.78

-8.15

-0.2

Germany

XETRA DAX

11136.20

-69.34

-0.6

Italy

MIB

19638.64

-69.42

-0.4

Spain

Ibex 35

9053.80

-15.30

-0.2

Sweden

OMX Stockholm 30

1493.76

-6.03

-0.4

Switzerland

SMI

9011.41

-12.55

-0.1

Asia/Pacific

 

 

 

 

Australia

All Ordinaries

5953.53

12.32

0.2

Japan

Nikkei 225

20719.33

53.26

0.3

 

Topix

1566.37

8.78

0.6

Hong Kong

Hang Seng

27196.54

105.73

0.4

S. Korea

Kospi

2124.61

0.33

0.0

Singapore

STI

3220.56

-3.78

-0.1

China

Shanghai Comp

2610.51

14.50

0.6

Taiwan

TAIEX

9889.40

53.34

0.5

India

Sensex 30

36578.96

192.35

0.5

*Markets closed

 

 

 

Data Source — Haver Analytics

 

 

 

Note: all releases are listed in local time.

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