Browsing public site

Morning report

Markets Quiet with US Closed

Global markets were relatively subdued on Monday and investors took the opportunity to relax ahead of a busy week as the US markets stayed closed for Martin Luther King Jr. day. European and UK equities peeled back from recent record highs, while Asia was mixed.

US market closed

US stock and bond markets are closed on Monday in observance of the Martin Luther King Jr. holiday.

European and UK stocks edged lower

European equities pulled back from record highs as the closed US markets provided investors an opportunity to catch their breath following Friday’s rally, and as they prepare for a busy week of economic data and the European Central Bank’s first policy meeting of the year. The Stoxx Europe 600 dipped lower by -0.1%, mostly weighed by drops in French and British stocks. Air France shares descended -4.6% after a broker downgraded the stock from outperform to neutral, citing limited perceived benefits from the airline’s planned turnaround. Fellow airlines Lufthansa (-2.2%), International Consolidated Airlines (-2.1%) and EasyJet (-1.9%) also fell, perhaps in response to increases in oil prices following supply disruptions in Libya and Iraq at the weekend. German equities bucked the trend in Europe, led by gains in electronic payments service provider Wirecard (+1.6%).
The UK’s FTSE 100 slipped -0.3% as focus in the country shifted back towards fears of a potential hard Brexit on an otherwise quiet day of trading. Stocks that weighed the most on the FTSE 100 included NMC Health (-3.7%), Burberry Group (-2.2%), BT Group (-1.8%) and Rolls-Royce Holdings (-1.7%). Defence company Bae Systems topped the performance tables, with shares jumping +3.7% higher after the company announced it was acquiring a pair of US defence companies. Outside the benchmark index, boutique tonic water maker Fevertree Drinks plummeted -27.2% after reporting a smaller-than-expected +10% rise in 2019 revenue due to subdued UK Christmas trading.

Asian markets mixed

Asian markets were mixed ahead of the Bank of Japan’s monetary policy meeting which began late in the day’s trading. The Shanghai Composite (+0.7%), Kospi (+0.5%) and Nikkei 225 (+0.1%) rose, while the Hang Seng slid -0.9% lower.

The ASX 200 added +0.2%, closing on a new record high for the fifth-straight session thanks to robust gains in the major iron ore minors.

Crude flat, gold and iron ore up

WTI crude was flat at US$58.54, while gold rose +0.3% to US$1,561.24 and iron ore added +US$0.50 to US$97.20/MT.

Today’s events

  • No events today

 


Not personalised financial advice: The recommendations and opinions in this publication do not take into account your personal financial situation or investment goals. The financial products referred to in this publication may not be suitable for you. If you wish to receive personalised financial advice, please contact your Forsyth Barr Investment Adviser. The value of financial products may go up and down and investors may not get back the full (or any) amount invested. Past performance is not necessarily indicative of future performance. Disclosure statements for Forsyth Barr Investment Advisers are available on request and free of charge. Disclosure: Forsyth Barr Limited and its related companies (and their respective directors, officers, agents and employees) (“Forsyth Barr”) may have long or short positions or otherwise have interests in the financial products referred to in this publication, and may be directors or officers of, and/or provide (or be intending to provide) investment banking or other services to, the issuer of those financial products (and may receive fees for so acting). Forsyth Barr may buy or sell financial products as principal or agent, and in doing so may undertake transactions that are not consistent with any recommendations contained in this publication. Forsyth Barr confirms no inducement has been accepted from the researched entity, whether pecuniary or otherwise, in connection with making any recommendation contained in this publication. Analyst Disclosure Statement: In preparing this publication the analyst(s) may or may not have a threshold interest in the financial products referred to in this publication. For these purposes a threshold interest is defined as being a holder of more than $50,000 in value or 1% of the financial products on issue, whichever is the lesser. In preparing this publication, non-financial assistance (for example, access to staff or information) may have been provided by the entity being researched. Disclaimer: This publication has been prepared in good faith based on information obtained from sources believed to be reliable and accurate. However, that information has not been independently verified or investigated by Forsyth Barr. Forsyth Barr does not make any representation or warranty (express or implied) that the information in this publication is accurate or complete, and, to the maximum extent permitted by law, excludes and disclaims any liability (including in negligence) for any loss which may be incurred by any person acting or relying upon any information, analysis, opinion or recommendation in this publication. Forsyth Barr does not undertake to keep current this publication; any opinions or recommendations may change without notice. Any analyses or valuations will typically be based on numerous assumptions; different assumptions may yield materially different results. Nothing in this publication should be construed as a solicitation to buy or sell any financial product, or to engage in or refrain from doing so, or to engage in any other transaction. Other Forsyth Barr business units may hold views different from those in this publication; any such views will generally not be brought to your attention. This publication is not intended to be distributed or made available to any person in any jurisdiction where doing so would constitute a breach of any applicable laws or regulations or would subject Forsyth Barr to any registration or licensing requirement within such jurisdiction. Terms of use: Copyright Forsyth Barr Limited. You may not redistribute, copy, revise, amend, create a derivative work from, extract data from, or otherwise commercially exploit this publication in any way. By accessing this publication via an electronic platform, you agree that the platform provider may provide Forsyth Barr with information on your readership of the publications available through that platform.