The pound is facing its worst run in almost a year, with sterling heading for its fourth consecutive weekly loss against the US dollar. Last week’s Bank of England interest rate cut, along with the prospect of further cuts, has pushed the pound down. The pound has also been falling against the euro for the last four weeks. Market analysts attribute this pressure on the pound to monetary policy changes, as the Bank of England eases policy in response to falling inflation.
In China, producer prices fell last month, while consumer inflation rose due to higher pork prices. European markets are rebounding, as recession worries ease, with the Stoxx 600 index gaining 0.4%. Additionally, the FTSE 100 in London has jumped by 0.33%, with miners among the top risers.
Meanwhile, Hargreaves Lansdown, a leading investment firm, has agreed to be taken over by a consortium of private equity companies for £5.4 billion. This deal means that the London Stock Exchange loses another member and the founders of Hargreaves Lansdown stand to receive hefty payouts.
In Tokyo, the Nikkei 225 share index closed up 0.5% after a week of highly volatile market moves. Wall Street also posted its best trading day in nearly two years, easing recession worries. Overall, the pound’s recent weakness comes after a strong start to the summer, with investors now reacting to excessive long positioning.
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