UK government bond yields fall ahead of budget statement
Yields on long-term UK government bonds, known as gilts, have fallen before a tax return by new Finance Minister Jeremy Hunt expected later today.
Yields on 10-year gilts fell 19 basis points to trade around 4.129%.
The 20-year gilt yield was down about 15 basis points at the market open, while the 30-year index-linked gilt yields were down about 17 basis points.
Yields on 5- and 2-year gilts also fell on Monday.
Sterling strengthens after policy reversals
The pound rose on Monday morning in Asia after further reversals of policy by the British government at the end of last week. The pound was last up 0.56% at $1.1233.
CNBC Pro: Nearing retirement? How to Allocate Your Portfolio Right Now, According to the Pros
Despite market volatility, asset managers say it’s important to stay invested if you’re nearing retirement.
But how should the funds be allocated, given unstable markets, a shorter investment horizon and the need for cash on hand for retirees?
CNBC Pro asks the experts for their opinion.
China’s central bank leaves medium-term rates unchanged
The People’s Bank of China rolled over its loans under the Medium-Term Lending Facility (MLF) and kept its interest rate unchanged at 2.75%, according to a statement on its website.
The central bank announced it would keep the one-year rate unchanged for a second month and injected 500 billion yuan ($70 billion) through the MLF.
A Reuters poll predicted no change in the MLF rate and a partial renewal of central bank loans.
CNBC Pro: As market volatility persists, Wall Street analysts say sell these stocks
Stocks around the world have been battered this year and major indices remain deep in negative territory.
As investors debate whether to sell or stay invested, CNBC Pro reviewed nearly 1,500 large- and mid-cap global stocks and found a number of top companies with sell or underweight ratings.
European markets: here are the opening calls
European markets are heading for a lower open on Monday as investors watch for a deteriorating economic outlook.
Britain’s FTSE index is expected to open 31 points lower at 6,819, Germany’s DAX down 60 points at 12,377 and France’s CAC down 29 points at 5,902, according to IG data.
The lower opening in Europe comes in an increasingly pessimistic global climate; equities in Asia-Pacific the region fell on Monday as recession fears weighed on sentiment.
In the United States, meanwhile, stock futures traded higher early Monday as investors awaited big earnings reports from Bank of America Monday, while Goldman Sachs will release the numbers on Tuesday morning.
Last week warmer than expected temperature inflation reading fueled sharp price swings in the markets as investors readjusted their expectations for upcoming U.S. Federal Reserve rate hikes.
On the data front in Europe, final inflation data for Italy in September is expected.
CNBC Pro: Morgan Stanley’s Mike Wilson Flags Key Earnings Risk – and Names Stocks to Avoid
Morgan Stanley’s US equity 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 it believes will be hit the hardest over the next 3-6 months and could see their prices decline over the same period.
Pro subscribers can find out more here.
— Zavier Ong