Sterling falls further as UK PM contest begins
UK public sector borrowing soars to £20 billion
Public sector borrowing reached £20 billion ($22.2 billion) in the U.K. in September, up from £11.8 billion in August, according to the Office for National Statistics.
It is the second highest September borrowing figure since monthly records began in 1993.
The figure is £5.2 billion more than the £14.8 billion originally forecast by the ONS.
— Hannah Ward-Glenton
Retail leads losses as UK reports lower sales figures
Retail leads losses in the European markets this morning, down 2.9%.
Britain’s retail sales figures were lower than expected, down 1.4% in September according to the Office for National Statistics.
The figure is 1.3% below pre-Covid levels in February 2020.
Retailers continue to cite rising prices and the cost-of-living crisis for hampering sales. The death of Queen Elizabeth II in September also caused many retailers to close.
— Hannah Ward-Glenton
Adidas shares down 7.2% after profit warning
Shares of Adidas have dropped 7.2% in early trade after the company issued a 2022 profit warning.
Puma is also trading around 4% lower following the Adidas announcement.
— Hannah Ward-Glenton
European markets: Here are the opening calls
CNBC Pro: Goldman Sachs says these stocks could beat an increasingly likely recession
“The macro picture is arguably more challenging than it has been for some time,” says Goldman Sachs, which is favoring a barbell strategy for the recession jitters.
The bank named several buy-rated stocks it thinks could do well against the current macro backdrop.
Pro subscribers can read more here.
— Zavier Ong
U.S. Treasury yields notch new decade-highs
The U.S. 10-year Treasury yield moved up as high as 4.272%, after topping 4.2% for the first time since 2008.
The policy-sensitive 2-year Treasury yield also rose to 4.639%, at its highest levels in 15 years.
The yield on the 30-year Treasury soared to a new 11-year peak of 4.266%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
–Jihye Lee
