Investment market update
UK equities are expected to open lower this morning as Asian and US markets fell overnight following China’s currency move.
Global stock markets fell as China’s currency devaluation sparked concern that the world’s second largest economy is heading for a deeper slowdown. Selling was heaviest among companies that rely on exports to China. General Motors Co. lost more than 2.1% and Apple Inc. fell 5.2%. Mining company Glencore Plc retreated 7.3% whilst the fashion group Burberry fell 4.4%.
China’s industrial production, investment and retail data all trailed analysts estimates, putting additional downward pressure on an already weakening currency. Industrial output rose 6% in July from a year earlier, down from 6.8% in June, undershooting even the most bearish estimate.
For want of a refinery unit in Indiana, oil is falling in Oklahoma and Alberta while gasoline in the Midwest is soaring. Leaking tubes on a piece of equipment forced BP Plc to shut the largest crude unit at its refinery near Chicago over the weekend. It could be down for at least a month.
Pearson Plc agreed to sell its stake in the 172 year old economist magazine in a £469 million deal with Exor SpA, completing an exit from business publishing after disposing of the Financial Times newspaper last month.