Thanks for joining me. Sir Keir Starmer has given a “measurement of hope” to the boss of the world’s largest fund manager.
BlackRock chairman and chief executive Larry Fink said the Labour leader has shown “real strength” to transform the party after the leadership of Jeremy Corbyn.
5 things to start your day
1) World leaders to warn of ‘catastrophic harm’ from AI at international summit | Draft communique highlights risk of technology being harnessed for bioweapons and cyber attacks
2) Tesla profits hit by electric car price war | Elon Musk has repeatedly cut prices to fend off growing competition
3) Netflix hikes prices in the UK | Subscribers continue to grow despite slowdown in the streaming market
4) Amazon to launch delivery drones in the UK next year | Ecommerce giant’s British launch will come over ten years on from the project’s beginnings
5) Jeremy Hunt poised to overhaul pensions triple lock as Treasury scrambles for cash | Predicted change to pension indexing will see basic payout increase by £837 next year
What happened overnight
Asian shares slid as risk aversion prevailed due to mounting worries over Middle East conflict, while the bond sell-off intensified, taking Treasury yields to fresh 16-year highs ahead of a keenly awaited speech from Fed Chair Jerome Powell.
Investors sought safer assets, keeping gold prices near two-month peaks and the dollar firm. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.4pc.
Wall Street stocks ended sharply after a mixed-batch of quarterly corporate results pushed Treasury yields higher.
The Dow Jones Industrial Average sank 0.98pc to 33,665.08. The S&P 500 lost 1.34pc to 4,314.6 and the Nasdaq Composite dropped 1.62pc to 13,314.30.
The yield on the 10-year Treasury rose to 4.89pc from 4.84pc late Tuesday. It topped 4.90pc earlier in the day for the first time since since 2007.
Asian stocks are set to slide following US peers lower, driven by the continued sell-off in Treasuries and increasing tensions in the Middle East.
Australian shares fell at the open while futures contracts in Japan and Hong Kong pointed to early losses. Oil steadied after extending its rally in the previous session with the US suspending some sanctions on Venezuelan output. Gold also extended gains amid demand for safe-haven assets. The precious metal has now risen over 4pc in the last five days.
Australian and New Zealand bond yields surged in early trading, after rates on Treasuries climbed Wednesday, pushing the dollar higher. Fed Bank of New York President John Williams said interest rates will have to stay at restrictive levels “for some time” to bring inflation back to the central bank’s target.
Meanwhile, traders are preparing for turbulent yen trading amid growing concerns that Japanese authorities will intervene to support the weakening currency as it approaches the 150 per dollar level.
Read More: £7trn fund management chief backs Sir Keir Starmer