British pound jumps on reports UK government will U-turn on cut to top tax rate
The British pound jumped on Monday morning on reports that the UK government will reverse plans to scrap the top rate of income tax.
Sterling gained 0.8% against the dollar to trade at around $1.1250 shortly after 7 am London time, taking the pound back to the level seen before Finance Minister Kwasi Kwarteng’s announcement of a raft of widely criticized tax cuts on Sept. 23.
ANZ sees significant chance of an OPEC+ cut as large as 1 million barrels per day
Ahead of an OPEC+ meeting on Oct. 5, ANZ sees a “significant chance of a cut” as large as 1 million barrels per day, analysts at the firm said in a note.
That move is likely to be made “to counteract the excessive bearishness in the market.”
The note added that any production cuts below 500,000 barrels per day, however, would be “shrugged off by the market.”
CNBC Pro: Investment pro says ETFs are a $10 trillion opportunity — and reveals areas of ‘tremendous’ value
Exchange-traded funds offer the benefit of diversification, says Jon Maier, chief investment officer at Global X ETFs. He said the ETF market is “growing exponentially” and estimates it to be worth $10 trillion.
He names several opportunities for ETF investors in this volatile market.
Pro subscribers can read more here.
— Zavier Ong
Oil prices jump on reports of OPEC+ mulling production cut
CNBC Pro: The five global stocks experiencing the de-globalisation trend, according to HSBC
New research from HSBC says supply chains, geopolitical tensions, and worsening financial conditions have forced many global companies to “substantially” turn inward in search of resilient revenue and growth.
In a tough economic environment with recessionary pressures, the bank said turning inwards is “probably helpful” for these stocks.
The report titled ‘A de-globalization wave?’ said European firms’ foreign sales dipped below 50% in 2021, the lowest level in the last five years.
European markets: Here are the opening calls
European stocks are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.
The UK’s FTSE index is expected to open 47 points lower at 7,341, Germany’s DAX 86 points lower at 13,106, France’s CAC 40 down 28 points and Italy’s FTSE MIB 132 points lower at 22,010, according to data from IG.
Global markets have pulled back following a higher-than-expected US consumer price index report for August which showed prices rose by 0.1% for the month and 8.3% annually in August, the Bureau of Labor Statistics reported Tuesday, defying economist expectations that headline inflation would fall 0.1% month-on-month.
Core CPI, which excludes volatile food and energy costs, climbed 0.6% from July and 6.3% from August 2021.
UK inflation figures for August are due and euro zone industrial production for July will be published.