Investment Market Update
UK stocks are expected to open higher this morning, with attentions remaining on macroeconomics and statistics.
Asia – Asian stocks rose, with the regional benchmark index heading for a one-year high, after weaker-than-expected payrolls data in the US tempered speculation the Federal Reserve may raise interest rates as soon as September.
US – US financial markets were closed for Labor Day.
UK – A drop in bank shares weighed on UK equities after Friday’s rally pushed the FTSE 100 Index to its highest level in three weeks. Royal Dutch Shell Plc advanced with crude as Russia and Saudi Arabia agreed to work together to stabilise the global oil market.
- The UK’s services industry rebounded strongly in August, suggesting the country will “avoid recession”. The Markit/CIPS purchasing managers’ index showed activity in UK services recorded the biggest month-on-month rise in the survey’s history.
- The price of oil jumped after Russia and Saudi Arabia agreed to discuss ways to stabilise the oil market. The price of Brent crude initially jumped by 5% but then fell to to stand 1.6% higher at $47.56 a barrel.