Good morning. The FTSE 100 is set to slide more than 1pc at the open as a global sell-off continues.
It comes after the tech-focused Nasdaq plunged 3.5pc on Thursday.
5 things to start your day
1) Slash beer duty to support struggling pubs, Tory MPs tell Sunak: British drinkers pay £3.6bn in beer duty each year, three times more than the average rate in Europe.
2) Brussels likely to strike partial access deal for the City: French minister Clement Beaune said the EU may grant a ruling that could allow the UK’s financial sector to do business across the Continent.
3) Councils fail to hand out £1.6bn of Covid grants for small firms: Ministers investigating failures by local authorities after worst offenders hand out a tiny fraction of allocated funding, new figures show.
4) Sunak to scrap Covid business loans and unveil new scheme: The Chancellor will end the three current support schemes at the end of March, roughly a year after they were launched.
5) It isn’t easy being green – just ask the Bank of England: Going green is difficult – it means favouring some companies over others, which is not usual central banking territory.
What happened overnight
Asian stocks skidded to one-month lows on Friday as a rout in global bond markets sent yields flying and spooked investors amid fears the heavy losses suffered could trigger distressed selling in other assets.
The scale of the selloff prompted Australia’s central bank to launch a surprise bond buying operation to try and staunch the bleeding, helping yields there come off early peaks.
Yields on the 10-year Treasury note eased back to 1.494pc from a one-year high of 1.614pc, but were still up a startling 40 basis points for the month in the biggest move since 2016.
Markets were hedging the risk of an earlier rate hike from the Federal Reserve, even though officials this week vowed any move was long in the future.
Fed fund futures are now almost fully priced for a rise to 0.25% by January 2023, while Eurodollars have it discounted for June 2022.
Even the thought of an eventual end to super-cheap money sent shivers through global stock markets which have been regularly hitting record highs and stretching valuations.
MSCI’s broadest index of Asia-Pacific shares outside Japan slid 2.4pc to a one-month low, while Japan’s Nikkei shed 2.5pc. Chinese blue chips joined the retreat with a drop of 2.5pc.
Coming up today
Corporate: Rightmove, RSA Insurance (Full year)
Economics: Nationwide house price index (UK); personal spending (US)