Asian equities saw mixed moves overnight. Some Chinese stocks were down as anxiety about the Chinese bond market trickled through. The Shanghai Composite was almost -0.84% lower at close to 7am London time; the Shenzhen index fell harder, down -1.52%.
However impressive end-of-week gains for US tech operators – think Amazon and Alphabet – help support Asian indices loaded with tech stocks; the Taiwanese Taiex was up +0.45% while the South Korean Kospi was +0.21% higher.
On the currency front the euro has moved beyond the $1.16 handle, up +0.06% to 1.1617 while sterling is +0.04% up against the dollar at $1.3139. The Spanish Catalan stand-off remains very much present though market reaction, so far, has been relatively muted despite chunky falls for Spanish banks CaixaBank and Sabadell; both are quitting their HQ’s from Barcelona. The euro is stronger against sterling, up +0.04% at 0.8841.
A rash of European business climate data emerges shortly including Economic Sentiment and Business Confidence plus German retail sales figures. Personal income numbers from the US emerge lunchtime. Looking further ahead, a President Trump announcement on who will head the US Fed looks likely by the end of the week – a currency mover. Also, it's likely the Bank of England will – after 10 years – lift UK interest rates on Thursday.
- UK FTSE 100 7,505.03 +0.25%
- Dow 23,434.19 +0.14%
- S&P 500 2,581.07 +0.81%
- Nasdaq 6,701.26 +2.20%
- Nikkei 225 22,011.67 +0.01%
- DAX 13,217.54 +0.64%
- CAC 40 5,494.13 +0.71%
- Gold 1,271.30 -0.04%
- Oil WTI 53.95 +0.09%
Profits surge for HSBC
The big corporate news this morning is a substantial profits boost for Hong Kong based HSBC. Pre-tax quarterly profits have landed at $4.6bn compared to less than $845m this time a year ago. That's close to a +450% increase.
"It's a spectacular set of results,” Kathleen Brooks from City Index told the Today programme, “but we do have to remember that this time last year, HSBC was in quite a lot of trouble so it's coming off quite a low base.”