• Terms and Conditions
  • Privacy Policy
  • DMCA
  • Disclaimer
  • Cookie Privacy Policy
  • Contact Us
Sixsense News
Advertisement
  • Home
  • Business
  • Economy
  • Fintech
  • Finance
  • Insurance
  • Market
  • Startups
No Result
View All Result
  • Home
  • Business
  • Economy
  • Fintech
  • Finance
  • Insurance
  • Market
  • Startups
No Result
View All Result
Sixsense News
No Result
View All Result
Home Market

Britain’s tax backdown bounces stocks and sterling By Reuters

Reuters by Reuters
October 4, 2022
in Market
0

Related articles

UK Manufacturing PMI rises to 44.2 points in September

September 22, 2023

European shares set for weekly drop as higher-for-longer rates loom By Reuters

September 22, 2023


© Reuters. FILE PHOTO: People walk past an electric board showing Japan’s Nikkei share average in Tokyo, Japan September 14, 2022. REUTERS/Issei Kato

By Tom Westbrook

SYDNEY (Reuters) – Asian stocks bounced on Tuesday after Britain scrapped bits of a controversial tax cut plan, tentatively improving global market sentiment and rallying bonds and the pound.

Australia’s central bank added to that sense of relief in markets, surprising investors by lifting interest rates by a smaller-than-expected 25 basis points, saying they had already risen substantially..

That pushed the dollar down, lifted the by 3.6% and spurred benchmark 3-year bonds for their best day in 13 years.

In trade thinned by holidays in China and Hong Kong, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.7%, led by gains in Australia.

UK stocks seemed set for a bounce, with futures up 0.8%.

“It feels short term it’s a little bit oversold,” said Geoff Wilson, chief investment officer at Wilson Asset Management in Sydney.

“Is this the bottom? It’s nearly impossible to pick the bottom, but I don’t think so,” he said, referring broadly to markets.

rose 2.8%. Sterling drifted up to an almost two-week high of $1.1343, making for a bounce now of almost 10% from a record low hit last week after plans for unfunded tax cuts unleashed chaos on British assets.

“The about-face … will not have a huge impact on the overall UK fiscal situation in our view,” said NatWest Markets’ head of economics and markets strategy John Briggs.

“(But) investors took it as a signal that the UK government could and is at least partially willing to walk back from its intentions that so disrupted markets over the past week.”

Investors also took heart from stability at the long end of the gilt market, even though emergency purchases from the Bank of England were only relatively modest.

S&P 500 futures () rose 1%, following a 2.6% bounce for the index overnight. [.N]

British Finance Minister Kwasi Kwarteng released a statement reversing planned tax cuts for top earners. It makes up only 2 billion out of a planned 45 billion pounds of unfunded tax cuts that had sent the gilt market into a tailspin last week.

South Korea’s Kospi bounced 2.5%, lifting away from last week’s two-year low, despite North Korea’s firing a missile over Japan for the first time in five years. ()

STERLING BOUNCE

The recovery for sterling has settled some nerves in the currency market, though the persistent strength of the dollar still holds a lot of major currencies near milestone lows and has authorities throughout Asia on edge.

Japan’s yen hit 145 to the dollar on Monday – a level that prompted official intervention last week – and was last at 144.71. The euro was at $0.9838, about three cents stronger than last week’s 20-year trough. [FRX/]

Chinese authorities have rolled out manoeuvres to support the yuan ranging from unusually strong signals to the market to administrative measures that raise the cost of shorting it.

“More volatility is almost certainly assured as FX markets re-focus on U.S. recession risks, which continue to build,” said ANZ senior economist Miles Workman, with U.S. jobs data on Friday the next major data point on the horizon.

The Australian dollar fell to $0.6451 after the central bank meeting. The Reserve Bank of New Zealand meets on Wednesday and the held just above $0.57. [AUD/]

Treasuries rallied in sympathy with gilts overnight and the benchmark 10-year yield dropped 15 basis points. It was steady in Asia at 3.62%, having briefly poked above 4% last week.

Other indicators of market stress abound. The remains elevated and above 30. Shares and bonds of Credit Suisse hit record lows on Monday as worry about the bank’s restructuring plans swept markets.

Oil held overnight gains on news of possible production cuts, and futures were last up 43 cents to $89.29 a barrel.



Source link

Tags: backdownbouncesBritainsReuterssterlingstockstax

Related Posts

UK Manufacturing PMI rises to 44.2 points in September

by Sixsense News
September 22, 2023
0

UK Manufacturing PMI increased to 44.20 points in September from 43 points in August of 2023. Services PMI decreased to...

European shares set for weekly drop as higher-for-longer rates loom By Reuters

by Reuters
September 22, 2023
0

© Reuters. FILE PHOTO: A trader works at the Frankfurt stock exchange in Frankfurt, Germany, February 22, 2022. REUTERS/Timm Reichert...

Apple’s iPhone 15 launches in China with people flocking to stores

by Sixsense News
September 22, 2023
0

Hundreds of people lined up at a flagship Apple store in Beijing to pick up the new iPhone 15 when...

largecap stock ideas: How Kotak Equities tweaked its largecap portfolio

by Sixsense News
September 22, 2023
0

Brokerage Kotak Institutional Equities has increased its weight on consumer plays Britannia Industries and Godrej Consumer Products (GCPL) as it...

9 Money Mistakes Setting Fire to Your Future

by Mike Brassfield
September 22, 2023
0

schankz / Shutterstock.comAdvertising Disclosure: When you buy something by clicking links on our site, we may earn a small commission,...

Load More

Signature Global concludes oversubscribed IPO, set to list on BSE and NSE By Investing.com

September 22, 2023

BOJ stands pat, Activision acquisition deal, UAW strike

September 22, 2023

UK Manufacturing PMI rises to 44.2 points in September

September 22, 2023

Threads adds easy profile switching to its mobile apps

September 22, 2023

European shares set for weekly drop as higher-for-longer rates loom By Reuters

September 22, 2023

Street Fighter, Resident Evil maker Capcom on synergy in films, gaming

September 22, 2023
Sixsense News

© 2022 Sixsense News All Rights Reserved.

Navigate Site

  • Terms and Conditions
  • Privacy Policy
  • DMCA
  • Disclaimer
  • Cookie Privacy Policy
  • Contact Us

Follow Us

No Result
View All Result
  • #3158 (no title)
  • Business
  • Economy
  • Finance
  • Fintech
  • Insurance
  • Market
  • Startups

© 2022 Sixsense News All Rights Reserved.