European stocks hit a two-week low in the morning, amid jitters on Scotland and before a crucial meeting by the Fed where future interest rate raises will be discussed. Asian stocks closed lower.
Here are five things that matter for markets now:
- Chinese e-commerce giant Alibaba (BABA) raised the upper target price of its IPO to $68 a share from $66 after strong demand. This means it would raise almost $22 billion and, if underwriters decide to sell more shares to meet demand, it could set the record as the world's biggest IPO.
- US officials believe independence for Scotland would be a disaster for the West, the FT reports. Former Fed Chairman Alan Greenspan warned that the forecasts made by the nationalists are not realistic and that the Bank of England will not be a lender of last resort to an independent Scotland.
- UK inflation slowed to a five-year low of 1.5% in August, driven by a 1.1% drop in the price of food and non-alcoholic beverages, putting less pressure on the Bank of England to raise interest rates. The pound remained down to the dollar on the session after the data was published.
- Foreign direct investment in China fell to a two-and-a-half years low in August. It was $7.2 billion, down 14% from a year earlier and bringing the total to $78.3 billion in the first eight months of the year. The services sector saw a rise in FDI, whereas manufacturing saw a slump of 15%.
- Airbus (EADSY), Europe's largest aerospace group, said it would sell a half a dozen businesses worth a total of $2.6 billion to simplify its defense and space division and focus on warplanes, missiles, launchers and satellites.