UK factory order growth hits four-month low; German economic confidence falls – business live

All the day’s economic and financial news, including the latest healthcheck on Britain’s manufacturing baseLatest: UK manufacturing order growth slowsGerman economic confidence dropped this monthPound bounces back after Brexit reportSterling hit by Brexit jitters 1.38pm GMT Wall Street is expected to open lower, when trading begins in 50 minutes.US Opening Calls:#DOW 25096 -0.38%#SPX 2721 -0.31%#NASDAQ 6743 -0.48%#IGOpeningCall 1.31pm GMT Tin hats on, folks. Analyst at Morgan Stanley think the recent stock market volatility was just an ‘appetiser’.In a new note to clients, Morgan Stanley warn that stocks will come under pressure again soon.It’s when growth softens while inflation is still rising that returns suffer most.Our cycle models suggest that DM [developed markets] remains in the late stages of a late-cycle environment. Rising equities, rising inflation, tightening policy,higher commodity prices and higher volatility are (in our view) a pretty normal pattern if that view is correct. Underneath all that sound and fury of the recent volatility spike, we think we’re still dealing with a playbook with a reasonable amount of precedent. Inflation, after all, often plays a role in a late-cycle volatility rise,as there’s tension between still-strong current conditions,and the effect of tightening (later). Continue reading…
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