- FTSE 100 expected to open lower following falls in the US and Asia
- Spread betting companies are calling the lead index down by around 60 points
- Chancellor summons bank leaders for talks - Sky
The bosses of Britain's biggest banks will hold talks with the new chancellor on Wednesday as he tries to exert a grip on the stalling UK economy, according to Sky News.
According to Sky Kwasi Kwarteng convened a meeting with the chief executives of lenders including Barclays (LON:BARC), Lloyds Banking Group (LON:LLOY) and NatWest (LON:NWG) Group just hours after being appointed to the post.
City sources said the meeting was to set out the government's approach to the economy as Liz Truss's administration attempts to respond to the crisis triggered by soaring global inflation.
Britain's biggest banks have been told by the City regulator to outline how they plan to support their customers through the cost of living crisis, and the new chancellor is likely to impress upon them the importance of doing so, according to one insider.
7.15am: Chinese trade figures disappoint
London markets look set to follow the US and Asia lower this morning with disappointing Chinese trade figures weighing on the market.
Michael Hewson chief market analyst at CMC Markets UK said “Last night’s weak US close looks set to translate into a lower European open, although today’s weak Asia session has also played a part after some disappointing China trade data.”
“It’s becoming increasingly difficult to feel optimistic about the outlook for the Chinese economy as we head into the winter months.”
“With 21.5m people already locked down in Chengdu, and new restrictions being imposed in places like Guiyang, in Guizhou province, as well as Shenzhen, it’s hard to see a scenario for a significant economic pickup much before next year.”
“This morning’s latest trade numbers for August merely serve to underscore how weak domestic demand still is, and how far away that end of year GDP target of 5.5% is.”
“Today’s August numbers suggest a continued lack of confidence in the part of the Chinese consumer as well as a lack of demand, slowing to a weaker 0.3%, well below expectations of 1.1%” Hewson said with exports “slightly more resilient recovering to 18% in July, and beating expectations after a weak quarter two.”
6.55am: FTSE 100 set for heavy falls at the open
The FTSE 100 is expected to open sharply lower today following falls in the US on Tuesday and in Asia overnight.
Spread betting companies are calling the lead index down by around 60 points.
In the US the Dow closed Tuesday down 174 points, 0.5%, at 31,148, the Nasdaq Composite slipped 86 points, 0.7%, to 11,545 and the S&P 500 shed 16 points, 0.4%, to close at 3,909. The indices swung positive around midday, but the rally was short lived.
The strong ISM services survey for August served to heighten the prospect that the Federal Reserve could go for another 75bps rate hike when it meets in two weeks.
In Asia, markets slipped back after disappointing Chinese trade data.
In London, results are due from WH Smith (LON:SMWH) and Barratt Developments (LON:BDEV) while Halfords is set to provide a trading update.