Oil plunges as world glut forecast for subsequent 12 months – newest updates
Thanks for joining me. We begin the day with the latest official wages figures, showing pay growth slumped to its weakest level in four years.
Total pay, including bonuses, grew by 3.8pc in the three months to August, according to the ONS, which was the lowest since November 2020.
5 things to start your day
1) Reeves insists National Insurance increase won’t break manifesto pledge | Chancellor says raising employers’ contributions would stick to promise to protect working people from tax rises
2) Britain ‘critically vulnerable’ to energy crisis | Experts warn over gas dependency after blackout prevention system mobilised for first time in two years
3) Economist who called Brexit ‘self-destructive’ wins Nobel Prize | Simon Johnson receives award for work into how institutions determine economic fortunes
4) US publisher Dovid Efune in exclusive talks to buy The Telegraph | New York Sun owner pursues takeover of ‘the very best of world-class, independent journalism’
5) Vauxhall owner to decide on fate of UK factories ‘within weeks’ | High taxes and changes to non-dom rules driving away wealthy, warns think tank
What happened overnight
Asian stocks were mostly higher on Tuesday, supported by a strong Wall Street close and investor optimism about corporate earnings, while the dollar held near a two-month top, aided by bets on a smaller US rate cut next month.
The Nikkei rallied 1pc to a three-week peak, having been closed on Monday for a holiday. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.2pc as gains in Taiwan and Australia were partly offset by a drop in Chinese markets.
China’s blue chips fell 0.4pc, while Hong Kong’s Hang Seng index slipped 0.3pc as a lack of new stimulus details from Beijing left investors wanting for more.
Local media reported that Beijing may raise an additional 6 trillion yuan ($850 billion) from Treasury bonds over three years to help bolster a sagging economy.
Oil prices fell amid easing concerns over tensions in the Middle East, on the back of reports that Israel may not target Iran’s crude infrastructure facilities. West Texas Intermediate fell 2.3pc to $72 a barrel.
Israel’s prime minister Benjamin Netanyahu has told the Biden administration that he would target military rather than nuclear or oil sites, the Washington Post reports.
In the US, the S&P 500 and the Dow reached record highs on Monday, fuelled by a surge in technology stocks.
The S&P 500 gained 0.7pc during the day, which was a federal holiday in the US, while the Dow Jones Industrial Average was up by 0.5pc. The Nasdaq Composite climbed 0.8pc. The bond markets were closed.
Chipmaker Nvidia was a standout performer, posting its first record close since June after rising 2.4pc.
