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Investment market update

Early Trading

UK stocks are expected to open higher this morning, after strong gains in US and Asian markets overnight.

World Markets

Asian stocks rose after fading expectations that the US Federal Reserve will raise interest rates this year. Japanese stocks led the gains as the nation’s central bank began a two-day meeting and investors assessed the impact of an historic accord to ease trade in among a dozen Pacific-rim nations. Mitsubishi Corp. advanced 0.7%, building on Monday’s 5.2% rally, after SMBC Nikko Securities Inc. said the trading house and its peers are among the likely winners from the trade accord.

US stocks climbed on speculation that the worst has been priced into shares and growth in the economy will be strong enough to support corporate profits. Energy shares were among the strongest performers in the S&P 500’s 10 main industries, rising 2.9%. Alcoa Inc. and Dow Chemical Co. gained at least 4.1% to pace a climb in raw-materials.

UK stocks rallied the most in more than a month as Glencore Plc led mining shares higher as it jumped 21%, after its Hong Kong-listed shares soared as much as 72%. Anglo American Plc and Antofagasta Plc also gained, up at least 4.7%. London-listed stocks with emerging market exposure tracked gains in Asian shares. Standard Chartered Plc, which gets almost a third of its revenue from Greater China, rallied 6.3%.

Headlines

Glencore Plc rallied for a fourth day in Hong Kong to lead mining stocks higher on rising confidence that the commodity giant can handle its debt burden even as raw materials languish and investors foresee US interest rates staying lower for longer.

SABMiller Plc, the brewer that’s in takeover talks with Anheuser-Busch InBev NV, said volume growth accelerated in the second quarter, helped by Africa and Latin America. Shipments rose 2% in the three months through September, while volume was unchanged in the first quarter.

German factory orders unexpectedly fell in August in a sign that Europe’s largest economy is vulnerable to weaker growth in China and other emerging markets. Orders, adjusted for seasonal swings and inflation, dropped 1.8% after decreasing a revised 2.2% in July.

The US brokered a historic accord Monday to ease trade in goods and services among a dozen Pacific-rim nations that make up about 40% of the world economy. The Trans-Pacific Partnership, five years in the making, will now be subject to months of scrutiny by lawmakers in all 12 nations that could yet derail it. The agreement was announced after a week of final talks in Atlanta. It will guarantee intellectual property rights for drugmakers, especially on the cutting edge of biotechnology, and reduce tariffs on goods from food to cars. American farmers will get to sell more rice to Japan, while Japanese automakers will have lower barriers for entry to the US market.

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