Investment market update
UK stocks are expected to open lower this morning, amid growing concerns the US might be preparing for a rise in interest rates in June.
Most Asian stocks were up at the start of this week as Japanese shares advanced after a report the government may delay a planned sales tax increase.
US stocks fell on Friday, amid lacklustre results from large retailers while data signalling an increase in consumer confidence added to the case for higher interest rates.
UK shares erased earlier losses to close higher. Tesco Plc rose 3.9%, the most since February, while Standard Chartered Plc and Lloyds Banking Group Plc rose more than 2.3%.
Wage growth is likely to remain low in the UK until the end of the decade, according to a survey by the Chartered Institute of Personnel and Development. It suggests that pay will rise by 1.7% in the next year. Since the financial crisis, pay growth has struggled to keep up with rising prices. Although, last year, wage increases did outstrip the rate of inflation.
Norway’s $850 billion wealth fund will seek to join a class action suit in Germany against Volkswagen AG following revelations the carmaker rigged the exhaust systems of 11 million diesel-powered cars worldwide to pass official emissions tests.
China’s domestic oil production dropped 5.6% from a year ago to 16.59 million metric tons in April, the steepest slide since November 2011, according to government data released Saturday. The trend is likely to worsen in the months ahead and, along with US production declines, will help rebalance the global oil market later this year.