A Positive Start to November

Global markets started the new month confident after a brutal October sank global equity markets with one of their worst drops since the financial crisis. An index of stocks tracking 47 countries, the MSCI World Index, was down 7.5% and had wiped out as much as $4.5 trillion in October. Markets were hammered with a flurry of concerns ranging from trade war, global economy and higher interest rates.

Asian markets continued their rise on the first day of November. Hong Kong’s Hang Seng Index rose 1.5%, with the Shanghai Composite Index rising 0.2%. Japan’s benchmark Nikkei 225 however, didn’t conform, easing 1%.

European markets shadowed Asian markets, trading higher with the help of robust company earnings overshadowing worries of slowing economic growth and political risk. Strong earnings from ING, BT group and ASM International helped offset disappointing earnings from Credit Suisse. Shares in Shell also fell as the oil company slightly missed expectations.

FTSE 100 stocks have generally had a good set of results in October. Oil giant BP, posted its best profit result in 5 years. Glaxo Smith Kline (GSK) also beat estimates, though Reckitt Benckiser bucked the trend. UK banks also showed strong earnings with RBS, Lloyds and HSBC all beating forecasts, though Barclays lagged behind.

However, the UK benchmark didn’t follow its European peers on Thursday. The FTSE fell on the back of a strengthening pound on a report that London and Brussel are close to a deal that would give London financial institutions continued access to European markets after Brexit. The pound has taken a beating in recent months on worries whether Britain can assure a deal with the European Union.

S&P 500 October Selloff

© Akif SH. Din, AGORA-direct Limited, 05/11/18

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Disclaimer:

The content of this text is deemed reliable, but the accuracy or completeness of the of the information therein is not guaranteed and AGORA-direct Limited shall not be liable for a delay if this information is not kept up to date. Although Agora-direct Limited believes that all information in this text is accurate, Agora direct Ltd. shall not be liable if this is not so. The information must not be suitable for everyone and should not be construed as an offer, recommendation, advice, call for action, or advertisement intended or designed.

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