European markets recorded a pessimistic end of the week
The European Stoxx 600 Index closed down 0.6% on Friday, although Britain’s FTSE 100 bucked the trend with a gain of 0.37%.
British politics has had a turbulent week, with a major pivot on fiscal policy on Monday, the resignation of the Home Secretary on Wednesday, and the Prime Minister’s finally resigning on Thursday.
Sterling spent most of the day lower against the dollar, although it returned to positive territory shortly before 5pm
Elsewhere in Europe, EU leaders continued to discuss how to tackle the bloc’s energy crisis, after Germany gave the green light to discussions on a price cap.
France’s CAC 40 closed 0.84% lower and Germany’s DAX fell 0.3%. And shares of construction and communications recorded the largest losses.
– Jenny Reed
Analysts say ‘little change’ for sterling market with pound down 1.4%
The British pound fell 1.3% against the dollar to $1.108 in early afternoon trade, more than erasing moderate gains made on Thursday as Prime Minister Liz Truss stepped down.
The British pound was trading at $1.1074 at 1:20 pm London time, its lowest level since October 12.
“Sterling has been vulnerable to broad strength in the ‘King Dollar’ today and reaffirms our view that what we saw yesterday – and even Rishi Sunak’s leadership prospects – is not a ‘game changer’ for sterling markets,” Viraj Patel, chief strategist at Vanda Research , for CNBC.
“Overseas investors are likely to see this political volatility as another reason to exit UK assets.”
Stocks on the move: Adidas extends losses, Telia drops 9%
Adidas losses increased to 12% during the afternoon deals, and Puma closely followed by a 9% drop in the share price.
Meanwhile, Swedish telecom operator Telia slid 9%. The company lowered its forecasts for 2022 and 2023 when reporting third-quarter earnings.
– Hannah Ward Glinton
The British pound fell further as the British Prime Minister’s contest started
UK public sector borrowing rises to £20 billion
Access to public sector borrowing 20 billion pounds ($22.2 billion) in the United Kingdom in September, up from 11.8 billion pounds in August, according to the Office for National Statistics.
It is the second highest number of borrowings in September since monthly records began in 1993.
The figure is £5.2 billion more than the £14.8 billion originally projected by the Office for National Statistics.
– Hannah Ward Glinton
Retail sector leads losses as UK records lower sales figures
Retail is leading losses in European markets this morning, down 2.9%.
UK retail sales numbers were lower than expected, down 1.4% in September according to the Office for National Statistics.
The figure is 1.3% below pre-Covid levels in February 2020.
Retailers continue to cite price hikes and the cost of living crisis to hamper sales. The death of Queen Elizabeth II in September also caused the closure of many retailers.
– Hannah Ward Glinton
Adidas shares fell 7.2% after a profit warning
Adidas shares fell 7.2% in early trading after the company issued a warning about its 2022 earnings.
Puma is also trading down 4% after the adidas announcement.
– Hannah Ward Glinton
European markets: here are the opening calls
United kingdom FTSE 100 It is set to open 36 pips low at 6905, according to data from IG.
Germany Dax An opening of about 119 points was seen low at 12636, France kak It is set to fall by 51 points to 6026 and Italy MIB The index is expected to drop by about 205 points at 21,398 points.
– Hannah Ward Glinton
CNBC Pro: Goldman Sachs Says These Stocks Could Increasingly Survive a Possible Recession
“The overall picture is arguably more challenging than it has been for some time,” says Goldman Sachs, who favors the iron-on strategy in recession stress.
The bank has named several stocks rated as a buy that it believes could do well against the current overall background.
Professional subscribers can read more here.
– Xavier Ong
US Treasury yields are at their highest level in a decade
The 10-year US Treasury yield rose to 4.272% after hitting 4.2% for the first time since 2008.
The policy-sensitive two-year Treasury yield also rose to 4.639%, at a 15-year high.
return on 30 years of treasury It reached a new 11-year peak of 4.266%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
–Ji Lee
CNBC Pro: Keep investing in chip stocks, one fund manager reveals how he trades the sector
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