Sterling continues to fall as UK PM competition begins
UK public sector borrowing rises to £20bn
Public sector borrowing achieved £20bn ($22.2bn) in the UK in September, up from £11.8bn in August, according to the Office for National Statistics.
It is the second highest September borrowing since monthly records began in 1993.
The figure is £5.2 billion more than the £14.8 billion originally forecast by the ONS.
– Hannah Ward-Glenton
Retail leads to losses as UK reports lower sales figures
Retail leads the losses in European markets this morning, down 2.9%.
UK retail sales came in lower than expected, falling 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 rising prices and the cost of living crisis as barriers to sales. The death of Queen Elizabeth II in September also closed many retailers.
– Hannah Ward-Glenton
Adidas shares down 7.2% after profit warning
Adidas shares are down 7.2% in early trade after the company issued a profit warning for 2022.
Puma is also trading about 4% lower following Adidas’ announcement.
– Hannah Ward-Glenton
European Markets: Here are the opening calls
those of the United Kingdom FTSE100 will open 36 points lower at 6,905 according to IG data.
of Germany DAX is seen around 119 points lower at 12.636, France CAC will fall 51 points to 6,026 and Italy’s MIB Index is expected to fall 205 points to 21,398.
– Hannah Ward-Glenton
CNBC Pro: Goldman Sachs says these stocks could weather an increasingly likely recession
“The macroeconomic picture is arguably the most challenging it has been in a while,” says Goldman Sachs, which favors a barbell strategy amid recession fears.
The bank named several buy-rated stocks that it thinks could do well given the current macro backdrop.
Pro subscribers can read more here.
– Zavier Ong
US Treasury yields hit new decade highs
The 10-year US Treasury yield rose to 4.272% after rising above 4.2% for the first time since 2008.
Monetary policy yields on two-year government bonds also rose to 4.639%, a 15-year high.
The return on the 30 years treasury rose to a new 11-year high of 4.266%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
–Jihye Lee
