Investment market update
UK stocks are expected to open in positive territory this morning despite the ongoing volatility in China. This week should see corporate news come to the fore, with updates expected from Morrisons, Associated British Foods, Barratt Developments and Berkeley Group.
Asian stocks were mixed after a US payrolls report gave little comfort to investors seeking direction on when the Federal Reserve will raise interest rates, and as trading in China resumed after a holiday. Toshiba Corp. gained 5.1% after reporting an annual loss following a delay after facing an accounting scandal.
US stocks fell as August payrolls data gave little guidance to investors. Goldman Sachs Group Inc. and JPMorgan Chase & Co. lost more than 1.9% to lead declines among the largest banks. Netflix Inc. declined for the sixth consecutive day, losing 2.3%.
UK and European stocks retreated along with global equities as investors cut exposure to riskier assets after US payrolls data failed to add clarity on whether the Federal Reserve will raise interest rates. Miners and energy producers fell the most among industry groups in Europe. BP Plc fell 4.9% after Bank of America Corp. downgraded the oil company to underperform, the equivalent of a sell rating, citing risks of capital expenditure cuts and dilutive acquisitions. Anglo American Plc and Glencore Plc lost more than 6% each.
German industrial production increased in July, signalling that Europe’s largest economy is weathering the headwinds of slowing global growth. Output, adjusted for seasonal swings and inflation, rose 0.7% after dropping a revised 0.9% in June, data from the Economy Ministry in Berlin showed on Monday. The typically volatile number compares with a median estimate of a 1.1% gain in a Bloomberg survey. Industrial production advanced 0.5% from a year earlier.
Standard Chartered Plc will appoint Judy Hsu, its global wealth management head, as Singapore chief executive officer to replace Neeraj Swaroop, according to Bloomberg. Swaroop decided to leave the bank after turning down the offer of a job overseeing Standard Chartered’s business in India. Standard Chartered plans to officially announce the moves as soon as this week, along with other changes being planned by Chief Executive Officer Bill Winters.
Chancellor of the Exchequer George Osborne said Britain could do more to tackle the refugee crisis as he called for a “fundamental rethink” of how international aid is spent. As Britain prepares to open its doors to thousands of Syrian refugees, Osborne said that local authorities across the UK will get extra resources from the £12 billion-pound aid budget to help deal with the cost of housing during the first year.