Investment market update
UK stocks are expected to open lower this morning as the campaign on the UK’s membership of the EU continues into its final 10 days.
Asian stocks retreated as a stronger yen hurt Japanese exporters while investors are also cautious of central bank meetings later this week. Toyota’s shares were down by more than 1.8%, Honda’s shares were 2.8% lower, while Nissan’s fell by nearly 2.5%.
US stocks were down as investors became nervous about global growth prospects. Banks fell the most with Goldman Sachs falling 2.1% and Bank of America slid 2.4%, while JP Morgan was 1.4% lower.
UK stocks retreated to a three-week low with mining and financial stocks leading the way. Standard Life was the biggest faller – dropping 4.4% after UBS cut its price target for the shares. Barclays lost 3.8%.
China’s economy steadied in May as factory production held up and consumers and the government offered support against diminishing growth in private investment, which has been hurt by declines in old-line industries such as coal.
Most economists think that the Bank of Japan is getting close to expanding its record monetary stimulus program. What they can’t agree on is whether Governor Haruhiko Kuroda will lead his policy board to take action at a meeting this week, or when they gather again next month.
A leading City investor has called on housebuilder Persimmon to cut back an executive pay plan that could see the management share £600m over the next five years. The scheme is one of the largest ever at a FTSE 100 company outside banking.