UK ‘risks interest rate overdose’ after GDP hit – latest updates

Thanks for being with us. The British economy contracted in July, official figures show, dealing a blow after a series of signs that the UK was doing better than expected.

Gross domestic product (GDP) contracted 0.5 per cent in July, according to the Office for National Statistics (ONS).

5 things to start the day

1) BP boss resigns over past relationships with colleagues | The abrupt departure comes as the oil giant struggles to balance investments in fossil fuels and clean energy.

2) Apple to ditch leather in effort to ‘protect the planet’ | US tech giant to use recycled fabric in its watch straps and phone cases to drive net zero reduction

3) Google pays $10 billion a year to maintain monopoly, Justice Department says | The most notorious antitrust trial since 1998 begins

4) Oil hits $92 for first time this year as OPEC cuts cause global supply shortfall | Motorists face surge in gasoline prices after Brent crude surpasses $92 a barrel

5) Judges need to be tougher on shoplifters, says Primark boss | Retailer joins calls for tougher enforcement as thefts sweep Britain’s high streets

What happened during the night?

Stocks fell on Wednesday in Asia after a drop in technology stocks dragged Wall Street lower ahead of a key report on US inflation.

Hong Kong’s Hang Seng lost 0.3 percent to 17,970.01 and the Shanghai Composite Index sank 0.9 percent to 3,109.88.

Japan’s Nikkei 225 index lost 0.4 percent to 32,656.85, while Seoul’s Kospi fell 0.2 percent to 2,532.69. Australia’s S&P/ASX 200 was down 0.8% at 7,146.40.

Wall Street stocks closed lower on Tuesday as investors awaited key data on US consumer inflation that is expected to influence the Federal Reserve’s upcoming interest rate decision.

The Dow Jones Industrial Average closed down 0.1 percent at 34,645.99 units.

The Nasdaq fell 1 percent to finish at 13,773.61, while the broad-based S&P 500 also lost 0.6 percent to 4,461.90.

The benchmark 10-year Treasury yield was little changed at 4.28 percent.

Asian stocks weakened after Wall Street faltered overnight. MSCI’s broader Asia-Pacific index of shares outside Japan was flat, while Tokyo’s Nikkei fell 0.2 percent.

Resource-intensive Australian shares lost 0.7 percent, Chinese blue-chip shares were flat, but Hong Kong’s Hang Seng Index rose 0.6 percent.