Investment Market Update
UK stocks are expected to open slightly higher after the long weekend, as commodity prices advanced since Friday.
Asia – Asian stocks were mixed, though Hong Kong stocks advanced as Chinese banks climbed before releasing earnings. China Southern Airlines Co. led declines in carriers after reporting lower income.
US – US stocks rallied to near a record high after data showing an increase in consumer spending. The S&P 500 Index rebounded from a three-day slide, and the dollar advanced against most of its major peers.
UK – UK stocks were closed for the August Bank Holiday, though European stocks fell as the possibility of a US interest-rate increase as soon as next month outweighed upbeat comments about the world’s biggest economy.
- An ally of German Chancellor Angela Merkel said the UK will have to pay into the European Union’s budget if it wants the single market’s advantages, diminishing Britain’s prospects for a low-cost solution after its vote to exit the EU.
- A record number of overseas investments were made in the UK in the 2015-16 financial year, buoyed by a surge from emerging markets, making the country Europe’s most popular for external financiers. Total projects funded by foreign direct investment rose 11%, the Department for International Trade said in a statement on Tuesday.