Investment market update
UK stocks are set to open lower, tracking overnight declines in the US and Asia, as global markets react to further disappointing inflation data out of China.
Asian stocks fell after Chinese factory-gate prices equalled their biggest fall since the global financial crisis, underscoring the threat that weakness in the world’s second-largest economy poses to efforts to fight deflation.
US and UK stocks fell after data showed imports in China extended the longest losing streak in six years. In the US, Intel Corp. slipped 2.5% in extended trading after the company said the personal computer market is not going to jump in the next quarter. JPMorgan Chase & Co. slipped 1.2% after reporting results. Banks contributed the most to declines on the FTSE 100 Index, with HSBC Holdings Plc and Barclays Plc slipping 2% or more.
China’s consumer inflation moderated and factory gate deflation extended a record stretch of declines, signalling the People’s Bank of China still has room to ease monetary policy further to support a slowing economy. The consumer-price index increased 1.6% in September from a year earlier, slowing from a 2% rise in August.
JPMorgan Chase & Co., the first big US bank to report earnings after the third-quarter volatility in global markets, missed analysts’ estimates and cautioned that trading is off to a tepid start this quarter. The nation’s largest lender said revenue fell 6.4% in the three months ended 30 September, driven by a decline in trading and mortgage-banking results.
China plans to issue yuan-denominated sovereign bonds in London for the first time as it seeks a greater role for its currency in global trade and finance. The sale would be the first offshore issuance of the notes outside of Hong Kong and is expected to take place by early November.