Global Market Report - April 25 2019

Asia

China’s Shanghai Composite Index lurched lower today after a reasonable run, sliding nearly 2.5% after a sharp fall late in the trading session. This fall was despite a dovish signal from the Chinese central bank.

Japan’s central bank also struck a similar note, saying it had no plans to raise interest rates for another year. Sceptics would add a postscript of “at least” to that message. Along with the ECB, the Bank of Japan is not expected to raise interest rates for the foreseeable future. With the dollar gaining ground against the yen in the year to date, Japan’s Nikkei has been well supported, and rose again today.

Europe

UK banks are in focus today: Royal Bank of Scotland (RBS) announced that its chief executive, who took over in October 2013, is to stand down next year. The shares drifted nearly 1% lower today.

Barclays (BARC) revealed a drop in profits in the first quarter, excluding conduct and litigation costs. The bank faces pressure from activist investor Edward Branson, which is piling pressure on its chief executive Jes Staley. Its shares fell 2% this morning.

Sainsbury's (SBRY) shares were at a 30-year low as the supermarket's merger with Asda was blocked by competition authorities.

In Europe, Germany and Spain markets are modestly higher, whereas France is modestly lower.

North America

Facebook (FB) reported after the bell last night and investors like what they see: the share price is up 8% in pre-market trading as revenue per user rose 16% in the first quarter.

Next up in the tech earnings carousel is Amazon (AMZN), which attracts near unanimous admiration from media and analysts. Morningstar analysts rate the ecommerce firm as a four-star stock, which means that it is currently trading below its fair value estimate of $2,200 per share. Analyst RJ Hottovy says that the firm is “likely to reshape retail, digital media, enterprise software, and other categories for years to come”.

Dow stalwarts Intel (INTC) and 3M (MMM) also report today. The Dow Jones retreated from its pitch at a new record high yesterday, while the S&P 500 and NASDAQ also lost ground. Early futures suggest a minor fall for US indices at the open today.

In economics, investors are focused on Friday’s US GDP data. Durable goods orders are in view today.