British pound jumps after reports UK government will turn around on top tax rate cut
The British pound rose Monday morning after reports that the British government will reverse plans to scrap the top income tax rate.
Sterling gained 0.8% against the dollar and traded at around $1,1250 shortly after 7am London time, bringing the pound back to the level seen before the announcement of a series of widely criticized tax cuts on Sept. 23.
ANZ sees great chance of an OPEC+ cut of up to 1 million barrels per day
Ahead of an OPEC+ meeting on Oct. 5, ANZ sees a “significant opportunity for a cut” of as much as 1 million barrels per day, analysts at the company said in a note.
That move will likely be made “to counteract the excessive bearishness in the market.”
However, the note added that any cut in production below 500,000 barrels per day would “be brushed aside by the market”.
—Jihye Lee
CNBC Pro: Investment Pro Says ETFs Are A $10 Trillion Opportunity – Revealing Areas Of ‘Huge’ Value
Exchange-traded funds offer the benefit of diversification, said 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 lists several opportunities for ETF investors in this volatile market.
Pro subscribers can read more here.
— Zavier Ongo
Oil prices jump after reports of OPEC+ production cut
CNBC Pro: The five global stocks experiencing the deglobalization trend, according to HSBC
New research from HSBC says supply chains, geopolitical tensions and deteriorating financial conditions have forced many global companies to turn “substantially” inward in search of resilient revenues and growth.
In a tough economic environment with recessionary pressures, the bank said turning inward is “probably beneficial” for these stocks.
The report entitled ‘A wave of deglobalization?’ said foreign sales of European companies fell below 50% in 2021, the lowest level in the past five years.
European markets: these are the opening calls
European equities 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 retreated after a higher-than-expected U.S. consumer price index report for August, which showed prices rose 0.1% for the month and 8.3% annually in August, the Bureau of Labor Statistics reported Tuesday, defying the expectations of economists who monitor inflation. would fall by 0.1% monthly.
The core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.
UK inflation figures for August are expected and Eurozone industrial production for July will be released.
— Holly Ellyatt
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