— Hannah Ward-Glenton

UK shares fall, sterling rises on new economic plan

UK scraps plans to raise corporation tax

British Chancellor of the Exchequer Kwasi Kwarteng has confirmed that the British government will not increase corporation tax to 25% as planned. The rate will remain at 19% in an effort to jump-start economic growth. — Hannah Ward-Glenton

UK government announces $67bn energy package and tax cuts

Britain’s finance minister announced a raft of measures to help with rising living costs and boost the country’s economy, including a 60 billion pound ($67 billion) energy package. The package will subsidize gas and electricity bills for households and businesses over the next six months. The government also announced tax cuts for businesses on designated sites, financial services reforms and the removal of bankers’ bonus caps. — Hannah Ward-Glenton

The eurozone is likely to enter recession as price rises hit demand

The euro zone is likely to enter recession as a region-wide slump in business activity deepened this month, according to S&P Global. The S&P Global Purchasing Managers’ Index (PMI) fell to 48.2 in September from 48.9 in August. High energy costs have hit manufacturers hard since Russia’s invasion of Ukraine, and rising prices have contributed to worsening business conditions. September is the third month in a row that the PMI fell below 50 – the benchmark that separates growth from contraction. — Hannah Ward-Glenton

The FTSE fell ahead of the UK mini-budget

The UK’s FTSE 100 is relatively flat this morning as investors await a mini-budget from the country’s Finance Minister Kwasi Kwarteng. The measures set out in the budget announcement are expected to boost the UK’s slowing economy. Tax cuts, energy subsidies and planning reforms are expected to make up the 200 billion pound ($225 billion) package. — Hannah Ward-Glenton

HSBC warns investors to avoid European shares

Investors should avoid allocating to Europe in the hunt for value stocks as the continent’s energy crisis means the risk-reward is not yet there, according to Willem Sels, global CIO of HSBC Private Banking and Wealth Management. “I would caution against buying Europe because of cheaper valuations and interest rate moves,” said Willem Sels of HSBC Private Banking. Read more here. Here’s how the pan-European Stoxx 600 is trading year-on-year:

Credit Suisse shares hit a record low

Credit Suisse leads early morning market declines after report of potential capital increase. Shares in the investment bank hit a record low of 4,335 francs in early trading. — Hannah Ward-Glenton

European markets: Here are the opening invitations

European stocks are expected to open higher on Friday as investors react to central bank rate hikes and signs of a US recession. Britain’s FTSE 100 is expected to open about 25 points higher at 7,172, Germany’s DAX 38 points higher at 12,581, France’s CAC 40 is expected to open 13 points and Italy’s FTSE MIB 42 points higher, according to data from IG.

CNBC Pro: Time to Buy Treasurys? Here’s how to allocate your portfolio, according to the pros

CNBC Pro: Hedge funds return to outperform stocks and bonds this year, UBS says

As both stock and bond prices fall at the same time, hedge funds are generally outperforming and are “well-positioned to weather the current market volatility,” according to a new UBS report. As market volatility continues, the Swiss bank shared the types of hedge funds it prefers. Professional subscribers can read more here. — Ganesh Rao

Nomura downgrades China’s growth outlook for 2023

Nomura downgraded its forecast for China’s annual growth in 2023 to 4.3% from 5.1%. Analysts have cited a potentially prolonged Covid-zero policy or a spike in infections in the country after a possible reopening in March. The latest downgrade comes after Goldman Sachs cut its outlook earlier this week to 4.5% from 5.3%. William Ma of Grow Investment Group told CNBC’s “Street Signs Asia” that he is optimistic about the policy changes he sees coming after the People’s Party Congress in mid-October. — Jihye Li

Futures contracts are consistently starting to trade after the market

Stock futures were steady after another tumultuous day as investors continued to grapple with the Federal Reserve’s decision to raise interest rates and concerns about the health of the economy. Dow Jones futures rose 41 points, or 0.14%, to 30,190. The S&P 500 rose 4 points, or 0.11%, to 3,776. The Nasdaq 100 gained 10 points, or 0.09%, to 11,575.50. — Alex Haring