Investment market update
UK stocks are set to open slightly lower after disappointing Chinese economic data overnight, while investors await today’s UK inflation figures.
Asian stocks fell, with Japan’s market retreating from a six-week high as trading resumed after a holiday. Energy-related shares led losses after crude oil gave back some of the recent gains.
US stocks rose for a fourth day amid gains in retailers as Amazon.com Inc. climbed to a record, and investors awaited further indications on the strength of the world’s biggest economy from corporate earnings reports.
UK stocks fell, snapping an eight-day winning streak, with commodity producers and Rolls-Royce Holdings Plc leading declines. Rolls-Royce fell 3.9% after the Financial Times reported that European regulators have started a probe into whether airlines are being forced to enter anti-competitive service contracts with component manufacturers. Standard Chartered Plc fell 3.1% after Investec Plc said that consensus estimates for revenue and earnings are too high.
Anheuser-Busch InBev NV agreed to buy SABMiller Plc for £68 billion, raising its bid to clinch a record industry deal that brings one out of every three beers sold worldwide under a single company. The Budweiser maker offered 4,400 pence a share in cash for a majority of the shares in its nearest competitor, gaining brands such as Peroni and Grolsch, and giving it control of about half the industry’s profit. The price is 46% above SABMiller’s closing value on 15 September, the day before the companies disclosed they were in contact about a potential bid.
Global demand for crude oil is growing while non-OPEC countries are producing less of it, helping to bring the supply and demand for oil back into equilibrium by next year, OPEC’s Secretary-General Abdalla Salem El-Badri and Kuwait’s oil minister said. “The current situation in the market is positive,” El-Badri said Monday at a conference in Kuwait City. “I expect to see a balanced market in 2016, if the current situation persists.” Demand for crude oil from the Organization of Petroleum Exporting Countries will increase this year and next, he said.
China’s imports extended the longest losing streak in six years, underscoring the headwinds to global growth from a rebalancing in the world’s second-largest economy. Asian shares, copper, the yuan and the Australian dollar weakened as a result. Imports plunged 17.7% in yuan terms in September from a year earlier, widening from a 14.3% decrease in August and an 11th straight decline. Exports fell 1.1% in September in yuan terms, the customs administration said Tuesday, compared with a 6.1% drop in August.