This morning, there’s a global rally on equity markets and the FTSE 100 is no exception, up 1.6% at 9.45am GMT. Financials and commodity stocks are at the top of the index.

This rally was sparked by the release Institute for Supply Management's purchasing managers' index, which is published on the first business day following the end of a quarter. The September ISM has deteriorated sharply and is approaching the contraction zone, a sign that the US economy is slipping. This is because bad news for the US economy can often good news for investors, who yesterday lowered their bets on the peak in key rates that the Fed will have to reach, which materialized in the decline in the yield of US government bonds.

Among stocks, Legal & General Group climbed 3.5% after it said that it would continue to support pension fund clients in the event of a surprise interest rate hike.

Energy stocks got a boost from higher oil prices caused by press reports over the weekend speculating on the announcement of a production cut of 1 million barrels when OPEC+ meets on Wednesday.

 

Things to read today:

Kwasi Kwarteng to bring forward debt-cutting plan after tax U-turn (Financial Times)

What is the impact of 45p tax U-turn on markets and mortgages? (The Guardian)

Abolishing the 45p tax rate was only a tiny part of our big plans to get Britain moving again (Daily Telegraph)