Investment market update
UK stocks are set to open lower this morning after mixed results overnight from global stock markets.
Japanese stocks rose, with the Nikkei closing the session 0.5% higher, as communication providers and banks led gains.
US stocks closed little changed at an eight-week high as consumer companies advanced before a number of earnings reports. Morgan Stanley followed Goldman Sachs Group Inc. and JPMorgan Chase & Co. in reporting profit that trailed analysts’ expectations, renewing concern over the earning power of financial companies. The stocks slid around 4.8%.
UK stocks retreated following a retreat in miners. Glencore and Anglo America fell 5%. Copper and nickel fell after a report showed economic growth in China, the biggest metals user, expanded at the slowest pace since 2009.
· David Cameron said Chinese President Xi Jinping will bring more than £30 billion in deals and investment on his visit to Britain this week, as the prime minister defended himself against charges he was being too warm towards his visitor.
· The People’s Bank of China is helping cement London’s dominance of yuan trading in Europe by conducting its first ever overseas debt sale in the city, a move timed to coincide with a state visit by President Xi Jinping.
· The Swiss National Bank may have to sell francs again should quantitative easing be expanded in the euro area. 63% of economists predict the central bank will respond with market interventions to stop the currency from appreciating, according to Bloomberg’s monthly survey. 42% forecast another cut to the deposit rate.
· A White House official said housing finance reform is no longer expected in the near term as he dismissed investors’ calls for releasing Fannie Mae and Freddie Mac from government conservatorship.