SYDNEY, Sept 26 (Reuters) – Sterling slumped to a record low on Monday, prompting speculation of an emergency response from the Bank of England, as confidence evaporated in Britain’s plan to borrow its way out of trouble, with spooked investors piling into U.S. dollars.
The carnage was not confined to currencies, as concerns that high interest rates could hurt growth also knocked Asian shares to a two-year low, with demand-sensitive stocks such as Australia’s miners and carmakers in Japan and Korea hit hard.
Full coverage: REUTERS
Sterling Crumbles To Record Low, Dollar Soars On UK Fiscal Angst
TOKYO, Sept 26 (Reuters) – Sterling tumbled to a record trough on Monday as traders scampered for the exits on speculation the new government’s economic plan will stretch Britain’s finances to the limit.
The British pound’s searing drop helped the safe-haven U.S. dollar to a new two-decade peak against a basket of major peers.
Sterling slumped as much as 4.9% to an all-time nadir of $1.0327, before stabilising around $1.05425, 2.9% below the previous session’s close.
Full coverage: REUTERS
In China, Home Buyers Occupy Their ‘Rotting’, Unfinished Properties
GUILIN, China, Sept 26 (Reuters) – For six months, home for Ms. Xu has been a room in a high-rise apartment in the southern Chinese city of Guilin that she bought three years ago, attracted by brochures touting its riverfront views and the city’s clean air.
Her living conditions, however, are far from those promised: unpainted walls, holes where electric sockets should be and no gas or running water. Every day she climbs up and down several flights of stairs carrying heavy water bottles filled with a hose outside.
Full coverage: REUTERS
Oil Prices Fall For A Second Day On Concerns For Expected Recession
Sept 26 (Reuters) – Oil prices fell for a second day on Monday on fears of lower fuel demand from an expected global recession sparked by rising worldwide interest rates and as a surging U.S. dollar limits the ability of non-dollar consumers to purchase crude.
Brent crude futures for November settlement slipped $1.35, or 1.57%, to $84.80 a barrel at 0640 GMT. The contract fell to as low at $84.51, the lowest since Jan. 14.
Full coverage: REUTERS
Morning Bid: Asia’s FX Doom Loops
Sept 26 (Reuters) – A look at the day ahead in Asian markets from Jamie McGeever
Expect an ugly open to Asian markets on Monday as investors try to shield themselves from the fallout from the widespread selling that battered stocks, bonds, and currencies on Friday.
The historic rout in UK bonds and sterling took center stage on Friday but at the heart of the gloom shrouding world markets is the Fed’s drive to raise rates far higher than most people had bargained for, and the effect that is having on global rates.
Full coverage: REUTERS
