GBP rises as Rishi Sunak poised to become UK prime minister
Pound sterling bounces after Rishi Sunak looks to have won the race for the title of UK prime minister.
Indices overview
European indices are mixed.
The Asia-Pacific (APAC) region is mostly up but China and more especially the Hang Seng Index is down heavily. This comes after China's ruling Communist Party wrapped up its five-yearly congress, taking steps that further elevate the status and power of party leader Xi Jinping.
Forex
USD/JPY (大口） volatility continues after a suspected intervention by the Bank of Japan (BoJ).
USD/CNH has gained after China gross domestic product (GDP) was finally released after the Communist Party congress wrapped up.
USD is holding Friday’s losses, while GBP bounced after Britain's former Chancellor of the Exchequer, Rishi Sunak, appears set to become Conservative Party leader and prime minister. This is after former prime minister, Boris Johnson withdrew from the contest yesterday, saying that he had enough support to make the final ballot but the country and Conservative Party needed unity.
This means the election to replace Liz Truss could be a straight battle between Sunak and Penny Mordaunt, the Leader of the House.
Earnings update
On the corporate calendar today there are earnings releases from Pearson and Philips. Philips is cutting 4 000 staff, or 5% of its workforce, immediately – taking a €300 million hit.
Tesla has meanwhile dropped its ticket price by 9% in China.
Commodities
Finally on the commodities front, gold is holding Friday’s gain, while oil is down after three days of gains.
Natural gas is testing three-month support.
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