UK market awaits next PM’s decision
Britain’s next prime minister is due to be announced in about 15 minutes, and market participants hope an end to the political no man’s land created when Boris Johnson resigned in July. I’m in.
The result of the tough and sometimes bitter leadership battle within the ruling Conservative Party is due to be announced at 12:30pm London time.
The next prime minister will be either current foreign minister Liz Truss or former finance minister Rishi Sunak, with Truss being the frontrunner.
The FTSE 100 Index fell about 0.7% around noon, and the pound was flat against the dollar.
— Bishop Catrina
Stoxx 600 down 1.2%, Euro pair down, Uniper down 11%
The European-wide Stoxx 600 index fell 1.2% in afternoon trading, but the euro recovered some of its earlier losses and traded above $0.99.
Shares of Germany’s utility and major gas importer Uniper were still down more than 11% as gas prices surged on the back of Russia’s cutoff of supplies to Europe.
Conditions in Europe are ‘tough’, bad news not priced enough, market analyst says

An analyst told CNBC on Monday that the outlook for the European market is “very grim” as the reality that Russia will likely continue to restrict gas supplies to the region sinks in.
“Investors are going to be very cautious going forward,” Janet Mui, head of market analysis at British wealth manager Brewin Dolphin, told Squawk Box Europe.
“The very clear implication is that euro assets will be under pressure, with the euro hitting new lows against the dollar,” he said.
Conversely, the dollar will be much stronger against both the euro and the pound, she said. did.
This, in turn, could be disinflationary for the US economy and means the Federal Reserve need not be aggressive about future rate hikes. She said the current market price of about 4% for the Federal Reserve next year could be as high as ever.
“A lot of the bad news is already priced in for the US market, but that probably won’t be the case in Europe yet,” Mui said.
— Jenny Reid
Kremlin condemns sanctions and European gas stop
Shares of Russia’s Gazprom soared on Wednesday after reporting substantial first-half gains and announcing a new dividend to shareholders.
Stojan Vasev | Press service of Gazprom Neft | via Reuters
Kremlin denies responsibility for shutting down gas supply to Europe via Nord Stream 1 pipeline, instead arguing that acquisition of necessary parts to keep pipeline infrastructure operational has become impossible It points to sanctions by Western countries.
Kremlin spokesman Dmitry Peskov said in a conference call with the media that Western sanctions are “causing disruption” to necessary maintenance work on pipelines, and that Europe is weaponizing gas supplies. I opposed the accusations of the leaders.
Russia’s state-owned gas provider Gazprom, which supplies gas to the Node Stream 1 pipeline connection to Russia and Germany, has completely halted supplies to Europe after detecting an oil leak.
— Natasha Turak
Europe’s STOXX 600 index falls 1%, below lows
Here’s an update on the pan-European STOXX 600 deal this morning.
European gas prices soar as Russia halts gas flow
European gas prices soared by about 30% on Monday after Russia announced it would indefinitely cut off gas flow to the continent via the Nord Stream 1 pipeline, renewing fears of widespread gas shortages and distributions. became.
Last month’s gas prices at the Dutch TTF hub, the European benchmark for natural gas trading, were last seen at €281 per MWh.
Stocks in action: Uniper drops 11%
Shares of German utility Uniper plunged more than 11% in early trading as gas prices soared after Russia halted flows to Europe.
Germany’s largest gas importer has already been forced to agree a €15 billion bailout with the German government due to Russian supply shortages.
Euro falls below $0.99 as Russia halts gas flow to Europe
Dollar index hits 110, highest level since 2002
The US dollar index reached 110.086 in Asian morning trading, reaching a 20-year high.
The Japanese yen fell further to 140.3 yen after hitting a 24-year low last week. The South Korean won is at 1,370.87 against the dollar, a level not seen since April 2009.
CNBC Pro: This tech stock is up nearly 20% over the past year.
Tech stocks have had a difficult year so far, with some of the biggest names in the red.
But one cybersecurity firm stands out for its relative resilience, and market veteran Nancy Tengler believes the stock is just getting started.
Tengler, CEO and chief investment officer of Laffer Tengler Investments, said her bullishness on the company could be interpreted as “controversial,” but in reality it’s a safer bet in the tech industry. He claimed it was a gamble.
Pro subscribers can read more here.
— Bishop Catrina
Caixin services PMI shows China services activity increased in August
China’s Caixin Services Purchasing Managers’ Index was 55.0 for August and 55.5 for printing in July.
The official non-manufacturing PMI for August is 52.6.
The PMI measure is continuous and represents an increase or decrease from the previous month with a 50-point mark meaning no change from the previous month.
— Abigail Ng
CNBC Pro: Mohamed El-Erian reveals where to invest now

Mohamed El-Erian, chief economic adviser to Allianz, said investors should look to get out of the “distorted market” as equity and bond valuations fell simultaneously.
“There was a time when all asset prices, stocks and bonds, went up, but we forgot about correlation. Should I care about the relationship? It’s a wonderful world,” he said. CNBC’s Steve Sedgwick Friday.
“But what the first half taught us, and what we learned again from mid-August, [is] that both can be down at the same time. ”
Investors looking for alternatives have several options, El-Erian said.
CNBC Pro subscribers can read more here.
— Elliott Smith and Katrina Bishop
European Market: Click here for the opening call
European stock markets on Wednesday rose 18 points to 7,560 with the UK’s FTSE index up 33 points to 13,944, France’s CAC 40 up 18 points to 6,616 and Italy’s FTSE MIB up 42 points to 23,029. , is expected to open trading with a cautious price increase. Data from IG.
Data releases include preliminary Eurozone unemployment data for the second quarter and gross domestic product for the second quarter. The latest UK inflation for July and provisional Q2 Dutch GDP are out.
Revenue comes from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.