The pound is back under pressure after bouncing back on Monday after Chancellor Jeremy Hunt reversed virtually all of Liz Truss’ debt-fuelled, tax-cutting mini-budget that battered financial markets.
Sterling was back around $1.12 early Thursday morning, down from more than $1.14 on Tuesday as the Truss government faced further political upheaval following the resignation of Home Secretary Suella Braverman.
Meanwhile, the dollar outperformed major peers on Thursday as government bond yields peaked at multi-year highs, while the yen fell to a fresh 32-year low, keeping markets on high alert for signs of intervention.
5 things to start the day off right
1) Threat of 12.3% fare hike leads to break with RPI: Ministers tell rail bosses to expect fare hikes well below inflation.
2) Russian oligarch refuses access to funds to maintain Surrey mansion: NCA alleges Petr Aven attempted to use commercial bank accounts to evade sanctions.
3) “Necessary pain” required to fight inflation, one Fed official warns in interview: Loretta Mester signals she is ready to vote for another big rate hike in November
4) Amazon under fire for failing to prevent kids from watching ‘adult’ videos: Ofcom accuses websites of putting profits ahead of child safety.
5) Hong Kong is spending billions to ‘scour the world for talent’ to bail out the ailing economy: The “Top Talent Passport” is intended to reverse the emigration of foreigners.
what happened overnight
Asian markets tumbled Thursday, trailing a Wall Street sell-off as the dollar regained strength as rising inflation, interest rate hikes and recession fears returned to the fore.
The upbeat start to the week, helped by better-than-expected earnings and a major reversal in Truss government policy, gave way to the bearish sentiment that has dominated markets throughout the year.
Hong Kong shares were down Thursday for the start of business, with the Hang Seng Index falling 1.70 percent, or 280.49 points, to 16,230.79.
The Shanghai Composite Index fell 0.50 percent, or 15.07 points, to 3,029.30, while the Shenzhen Composite Index on China’s second bourse fell 0.63 percent, or 12.52 points, to 1,969.32.
Tokyo, Sydney, Seoul, Wellington and Taipei were all down at least 1 percent.
Financially: AJ Bell, Dechra, Dunelm, Rentokil, Travis Perkins (trade statements)
Business: producer price inflation (eng) trade secret (Woman)unemployment claims (US)
https://www.telegraph.co.uk/business/2022/10/20/markets-latest-pound-euro-ftse-100-russia-energy/ Markets latest: Tesla tumbles after sales fall $640m short of expectations