The FTSE 10 is expected to fall about 0.34% when it opens today, as the fallout from Friday’s huge lack of US job growth continues to trickle into global markets.
Goldman Sachs lowered its economic outlook for the United States, causing Asian stocks to fall overnight, although Japan’s Nikkei climbed 0.7% on better-than-expected GDP rise of 1.9% .
Jeffrey Halley, senior market analyst at the Oanda trading platform, said: “The uninspiring performance of Wall Street and falling commodity prices are weighing on Asian markets.
Europe is therefore on the right track for less openness.
Meanwhile, Bitcoin plunged 12% to $ 46,265 after El Salvador adopted cryptocurrency as legal tender.
Later, we should get more details on how the housing market is performing after the stamp duty holiday for most buyers ends later this morning when RICS releases its monthly survey.
It will follow data from yesterday’s Halifax which showed house prices hit an all-time high in the UK in July, as more Britons scrambled for space after months of working at residence.
5 things to start your day
1) City of London faces new threat of £ 600million dividend raid The tax on dividend income will drop from 7.5% to 8.75% next April as part of a blitz on savers, workers and businesses to raise £ 36bn over the three years to close a post-pandemic backlog in the NHS and reform social protection. This deals another blow to the Square Mile as London battles hostility from Brussels and seeks to keep pace with New York.
2) Johnson’s National Insurance raid threatens 130,000 jobs The 1.25 pc hike in national insurance – labeled as a health and social protection tax and greeted with indignation across the political spectrum – breaks a commitment in the 2019 electoral manifesto to reduce waiting times as the NHS is reeling from the fallout after Covid.
3) Ofcom plans to break with Brussels rules to stimulate broadband companies Ofcom has opened a consultation on relaxing the application of rules that require operators to treat all internet traffic equally, as part of a post-Brexit overhaul of bureaucracy. The watchdog said it could alleviate demands on Britain’s internet infrastructure as more people use the web to work from home.
4) Two energy suppliers go bankrupt after soaring electricity prices Nearly 94,000 energy customers remained in limbo after two suppliers went bankrupt in the wake of soaring wholesale electricity prices, raising questions about the industry’s resilience. PfP Energy – which has approximately 80,000 domestic customers and 5,000 business customers – ceases operations, as does MoneyPlus Energy, which has approximately 9,000 domestic customers.
5) Sturgeon drives Scotland to the left with universal income plan Presenting his political platform after reaching a coalition deal with the Green Party, the Prime Minister confirmed his intention to test a four-day work week, invest an additional £ 2.5bn in health spending and to work to develop a minimum income guarantee.
What happened during the night
Stocks were mixed in Asia on Wednesday after the largely lower Wall Street shutdown as traders returned from Labor Day.
Japan’s growth for April-June has been revised at an annual rate of 1 pc against a preliminary estimate of 1.3 pc.
Strong trade data from China on Tuesday failed to counter the moderating impact of a weak US employment report last week.
Japan’s Nikkei 225 index rose 0.5% to 30,061.71, while the Hang Seng in Hong Kong climbed 0.7% to 26,533.40 before falling to end the session in the red. The Shanghai Composite Index added 0.3 pc to 3,688.27. In Seoul, the Kospi lost 0.3 pc to 3,178.63. The Australian S & P / ASX 200 lost 0.3% to 7,506.30, and benchmarks fell in Taiwan and Singapore.
- Business: Dunelm (Full year); Bakkavor, Inspecs, Vietnam Ent Inv, Impact Healthcare (interim); Biffa, Halfords (Trading Update)
- Economy: RICS housing survey (United Kingdom)