UK government bond yields fell during the fiscal year
The yield on long-term UK government bonds, known as gilts, fell during a statement made by British finance minister Jeremy Hunt.
The yield on the 20-year note fell 42 basis points at the time of the statement, falling to 4.439%. The yield on the 30-year index-linked gilt bond also fell 42 basis points to 4.368%.
The yield on 10-year gilts fell 32 basis points to trade around 3.997% just before Hunt spoke. Yields for 5-year-old and 2-year-old hogs were also down on Monday.
– Hannah Ward-Glenton
British Chancellor of the Exchequer Jeremy Hunt canceled the majority of Prime Minister Liz Truss’s budget
Stocks in motion: ITV up 9.6%, Hargreaves Lansdown down 4.4%
ITV shares rose 9.6% after a report by the Financial Times that it may sell a stake in its production arm ITV Studios.
ITV Studios is one of Europe’s biggest program producers and some analysts believe it could be worth more than its parent company’s market capitalization of £2.5 billion ($2.82 billion).
British investment platform Hargreaves Lansdown fell 4.4 percent after delayed earnings reports and news that chief executive Chris Hill is stepping down. The company reported that assets under management decreased in the first quarter of fiscal 2023.
The organization was also hit by a multi-million dollar bankruptcy case against one of its former fund managers, Neil Woodford.
– Hannah Ward-Glenton
UK government bond yields fall ahead of fiscal statement
The yield on long-term UK government bonds, known as gilts, fell ahead of the new Finance Minister Jeremy Hunt’s fiscal statement due later today.
The 10-year gilt yield fell 19 basis points to trade around 4.129%.
The yield on the 20-year gilt bond was down about 15 basis points at the market open, while the yield on the 30-year index-linked gilt bond was down about 17 basis points.
Yields for 5-year-old and 2-year-old hogs were also down on Monday.
– Hannah Ward-Glenton
British pound strengthens after policy reversal
The pound rose on Monday morning in Asia after more policy changes from the UK government late last week. The pound was last 0.56% higher at $1.1233.
CNBC Pro: On the verge of retirement? How to allocate your portfolio right now, according to the pros
Despite volatile markets, asset managers say it’s important to stay invested if you’re nearing retirement.
But how should the funds be allocated given volatile markets, a shorter investment horizon and the need for retirees to have some liquidity?
CNBC Pro asks the experts for their opinions.
Professional subscribers can read more here.
— Weizhen Tan
China’s central bank leaves medium-term interest rates unchanged
The People’s Bank of China rolled over its medium-term loan facility (MLF) and kept its interest rate unchanged at 2.75 percent, according to a statement on its website.
The central bank said it would keep the one-year interest rate unchanged for a second month and inject 500 billion yuan ($70 billion) through the MLF.
A Reuters poll expected no change in MLF rates and a partial rollover of central bank borrowing.
— Jihe Lee
CNBC Pro: As market volatility continues, Wall Street analysts say to sell these stocks
Global stocks have taken a beating this year and the major indexes remain deep in negative territory.
As investors weigh whether to sell or stay invested, CNBC Pro examined nearly 1,500 global large- and mid-cap stocks and found a number of large companies with sell or undervalue ratings.
CNBC Pro subscribers can read more here.
– Ganesh Rao
Wednesday, August 17, 2022, 12:29 PM EDT
European markets: Here are the opening invitations
European markets are headed for a lower open on Monday as investors examine the deteriorating economic outlook.
The UK’s FTSE is expected to open 31 points lower at 6,819, Germany’s DAX down 60 points to 12,377 and France’s CAC 29 points lower at 5,902, according to IG data.
The lower open position in Europe comes amid increasingly pessimistic global sentiment; stocks in the Asia-Pacific region fell on Monday as recession fears weighed on sentiment.
Meanwhile, in the US, stock futures were trading higher early on Monday as investors awaited a big earnings report from Bank of America on Monday, while Goldman Sachs will release numbers on Tuesday morning.
A hotter-than-expected inflation report sent markets tumbling last week as investors readjusted their expectations for upcoming interest rate hikes by the US Federal Reserve.
On the data front in Europe, final inflation data for Italy is expected in September.
— Holly Elite
CNBC Pro: Morgan Stanley’s Mike Wilson notes key risk to earnings — and names stocks to avoid
Morgan Stanley’s US equities team, led by Michelle Weaver and Mike Wilson, says there is a key risk to earnings on the horizon.
The investment bank named several stocks that it believes will be most affected over the next 3-6 months and could see their share prices decline over the same period.
Professional subscribers can read more here.
— Zavier Ong
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