Investment market update
UK equities are expected to open slightly lower this morning, after a sell-off in Asian stocks overnight as traders worry over the state of the Chinese economy and are wondering whether the Fed will hike interest rates.
All major indices fell as concerns over slowing growth in China and other developing nations, amid a deepening commodities sell-off which overshadowed improvements in America’s housing market.
In the US, Wal-Mart Stores Inc. fell 3.4% after cutting its annual earnings forecast, while Home Depot Inc. added 2.6% after boosting its outlook.
In the UK, Glencore Plc, rallied 3.6% even as industry peers fell, after investor Harris Associates LP increased its holding. The 4.5% stake, worth about $1.6 billion, now makes Harris, Glencore’s fourth-largest shareholder.
Former Olympic 1500m champion Sebastian Coe has been elected president of athletics’ governing body, the IAAF. The UK’s Lord Coe succeeds Senegalese Lamine Diack, 82, who has led the IAAF for 16 years.
The Pound climbed to a seven-week high against the dollar after UK inflation unexpectedly accelerated last month, prompting traders to push forward wagers on an interest-rate increase by the Bank of England.
The European Central Bank reduced the maximum level of emergency aid available to Greek banks in a sign the country’s financial tensions are easing, after a rescue package was agreed with creditors.
The UK’s inflation rate turned positive in July, with the Consumer Prices Index measure rising to 0.1% from June’s 0.0%. A smaller fall in the price of clothing was the main reason for the rise, the Office for National Statistics said.