Good morning.
Sterling fell 0.19% to $1.1144 in early trade but has rallied strongly since the Bank of England announced it would buy as much government debt as needed to restore order .
The Bank of England remained in contact with Swiss authorities last night after an attempt by Credit Suisse to calm nerves, instead fueling fears of further turmoil in the financial system.
In his speech to the Conservative Party conference today, Kwarteng will argue that an “incredibly strong US dollar” is a problem facing all economies, not just the UK.
5 things to start the day
1) Julian Jessop: The markets are wrong about ‘Trussonomics’ just like they are about Brexit
2) ‘Chaotic’ service puts West Coast Main Line contract at risk: Avanti West Coast ‘should be stripped of control’, Greater Manchester mayor says
3) Dollar strength puts pressure on Jaguar Land Rover’s debts: More than a third of the UK’s biggest carmaker’s £8.9bn debt is in dollars
4) Pensions titan pledges to back nuclear power revival: Phoenix Group breaks ranks with rivals to back new stations
5) Liam Halligan: £895bn QE monster really to blame for market crash
What happened during the night
Hong Kong shares fell again in early trade on Monday, with investors awaiting a key US jobs report later in the week, while attention will also turn to the upcoming earnings season
The Hang Seng lost 1 point, or 172.58 points, to 17,050.25. Meanwhile, markets in mainland China are closed all week for a national holiday.
Tokyo stocks opened lower and extended declines on Wall Street, where fears grew that monetary tightening could lead to a global recession.
The benchmark Nikkei 225 index fell 0.89%, or 231.30 points, to 25,705.91 in early trade, while the broader Topix fell 0.73%, or 13.48 points, up to 1,822.46.
It arrives today
- Economy: Manufacturing PMI (UK, US, EU)
- Corporate: Joules (Full Year), Renewi (Trading Status)