Morning Note: A Round-up of Market News
Market News
Global stocks extended their slide into a fourth day as concerns over lofty valuations and mixed signals from Federal Reserve officials on interest rates sapped investor sentiment.
US equities fell last night – S&P 500 (-0.5%); Nasdaq (-0.5%) – and followed through in Asia this morning: Nikkei 225 (-0.9%); Hang Seng (-0.4%); Shanghai Composite (-0.4%). Indonesia’s central bank intervened in FX markets as the rupiah fell toward a record low. The FTSE 100 is currently 0.3% higher at 9,241, while Sterling trades at $1.3350 and €1.1430. Gold held steady at $3,750 an ounce.
Pharma companies are under pressure after President Trump said he’ll impose a 100% tariff on branded or patented drugs on 1 October unless a company is building plants in the US. The average tariff rate may rise as much as 3.3 points, according to Bloomberg Economics. It’s not clear how the previously announced 15% cap on EU drugs will be affected. Trump also announced new levies targeting heavy trucks, kitchen cabinets, and bathroom vanities.
EssilorLuxottica is firm this morning following the US FDA grant of market authorisation for its Stellest spectacle lens. Clinically proven to slow myopia progression in children, Stellest has been a very strong performer in China.
Brent Crude moved above $69 a barrel, hovering near an eight-week high and set for its strongest weekly gain since early June, as conflict-related pressures on Russian oil spurred supply concerns. President Trump urged Turkish President Recep Tayyip Erdogan to halt oil imports from Russia to increase constraints on Moscow amid the Ukraine conflict.
Lisa Cook’s attorneys warned the Supreme Court that even her temporary removal from the Fed risks “chaos and disruption” in markets.
Source: Bloomberg
