Asian stocks were broadly higher on Monday with most bourses unfazed by the US government shutdown. South Korean Samsung however fell more than -2%. Concern lingers on the threat of Apple’s X Phone as well as the supply – the continued supply, that is – of some Samsung-sourced components in Apple products.
However the Taiex was up more than +0.70% and the Hang Seng up +0.32% with China Resources Land surging almost +7% and Want Want China up +5.4%. Better news from Europe: there's an increase chance Angela Merkel will get a fourth term thanks to more impetus for formal coalition discussions. It also means the high risk stakes of re-election are bought lower.
Staying positive, ex Tory minister Lord Jim O’Neill says 2018 could be much more economically robust for the UK than previously expected. “Some parts of the country, led by the North West [of England], are actually doing way better than people seem to realise or appreciate,” the BBC reported.
The pound was -0.13% against the dollar at 1.3872 at close to 7am while the pound was +0.12% higher against the euro at 1.1347. Brexit worries appear to continue to ease with pound-euro technical levels firming. Two key sterling-sensitive events this week: employment numbers on Wednesday and Q4 GDP numbers on Friday. Oh, and President Trump turns up at Davos on Friday...
- UK FTSE 100 7,730.79 +0.39%
- DAX 13,434.45 +1.15%
- CAC 40 5,526.51 +0.58%
- Euro Stoxx 600 400.88 +0.54%
- Dow 26,071.72 +0.21%
- S&P 500 2,810.30 +0.44%
- Nasdaq 7,336.38 +0.55%
- Nikkei 225 23,816.33 +0.03%
- Gold 1,331.00 -0.16%
- Oil WTI 63.48 +0.17%
Markets respond to US shutdown today
It’s uncertain just how the US government shutdown will play out this week. Many government officers will remain closed. Democrats want President Trump to give way on immigration as part of budget negotiations. However Trump says say no discussions are possible while many federal office are closed.
Today will be the first proper opportunity the financial markets have to respond to the in situ shutdown. Around 1m government workers will not be at their desks as the dysfunction continues. The spot dollar price was -0.08% lower this morning at 90.60.
AVEVA positive on contract renewal
This morning engineering design operator AVEVA Group reported better expectations for this stage of the financial year, “albeit with the final and most significant quarter of the year yet to complete”.
A substantial three-year renewal contract “is expected to make a material revenue contribution to the current financial year”. An update on its new CEO will come “in due course”. AVEVA shares are up more than +3.5% in the last week and +51% higher in the last year.
Breaking news: Earlier it was disclosed that boss of Carphone Warehouse and Currys PC World Sebastian James is to quit and join Boots. Sports retailer Pou Sheng International saw its shares rocket more than +30% following a takeover offer from its ex owner.