Good morning.
Sterling fell 0.19pc to $1.1144 in early trading, however it has rebounded strongly since the Bank of England announced it would buy as much government debt as needed to restore order.
The Bank of England was last night liaising with Swiss authorities after an attempt by Credit Suisse to calm nerves instead stoked fears of further turbulence in the financial system.
In his Conservative Party conference speech today, Mr Kwarteng is set to argue that an “incredibly strong US dollar” is a problem facing all economies, rather than just the UK.
5 things to start your day
1) Julian Jessop: The markets are wrong about ‘Trussonomics’ just like they were about Brexit
2) ‘Chaotic’ service puts west coast main line contract under threat – Avanti West Coast ‘should be stripped of control’, says Greater Manchester mayor
3) Dollar strength puts pressure on Jaguar Land Rover’s debts – Over a third of the £8.9bn debt held by Britain’s biggest car manufacturer is in dollars
4) Pension titan vows to back nuclear power renaissance – Phoenix Group breaks ranks with rivals to back new stations
5) Liam Halligan: The £895bn QE monster is really to blame for the market meltdown
What happened overnight
Hong Kong stocks dropped again at the start of trade on Monday, with investors looking ahead to a key US jobs report at the end of the week, while attention will also turn to the upcoming earnings season.
The Hang Seng Index lost 1pc, or 172.58 points to 17,050.25. Meanwhile, mainland Chinese markets are closed all week for a national holiday.
Tokyo stocks opened lower, extending falls on Wall Street, where fears grew that monetary tightening could lead to a global recession.
The benchmark Nikkei 225 index was down 0.89pc, or 231.30 points, at 25,705.91 in early trade, while the broader Topix index plummeted 0.73pc, or 13.48 points, to 1,822.46.
Coming up today
- Economics: Manufacturing PMI (UK, US, EU)
- Corporate: Joules (full-year), Renewi (trading statement)
