"Asian markets closed out the week on a negative footing, as the tech-sector rout from Wall Street spilled across the globe. Meanwhile, a raft of concerning data points out of China saw weak retail sales, industrial production, and home price figures. This had a particular impact on tech-focused consumer firms such as Alibaba and JD.com. The weakness in both consumer and business indicators signalled a need to be cautious in the region."
"This time we have the Chancellor apparently considering a U-turn on income tax hikes, as she attempts to keep both households and her party onside when she provides her Autumn budget later this month. The strength seen in the pound clearly indicates that markets perceive this move as lessening the likeliness of a rate cut from the BoE, despite the weak GDP figures seen on Wednesday."
Asian markets weakened as a tech-sector rout from Wall Street spread globally and disappointing Chinese retail sales, industrial production and home price data dented sentiment. Tech-focused consumer firms such as Alibaba and JD.com underperformed amid concerns over consumer and business indicators and AI-driven valuation risks. European markets followed lower with financials leading declines. UK political uncertainty and potential fiscal U-turns influenced sterling and market expectations about Bank of England rate cuts, complicating public finances. US data gaps after a shutdown resolution increased reliance on private indicators, while the tech slump extended into the weekend.
Read at London Business News | Londonlovesbusiness.com
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