Europe’s leading battery maker is to slash jobs and scale back its commitments as the “challenging” market for electric vehicles bites manufacturers.
Northvolt, the Swedish company which raised £10bn to challenge China’s dominance of batteries, today pledged to refocus efforts on improving its struggling factory in Skellefteå and cutting costs.
This will involve “a re-scope of operations and appropriate resizing of our workforce”, an announcement said.
The company, which counts German car giants BMW and Volkswagen among its backers, also said it would sell or seek investment from outside partners in its energy storage business.
It is the latest business to scale back its investment plans as a slowdown in EV sales spooks the automotive industry.
Last week, Volkswagen warned that it could be forced to close a factory in Germany for the first time and make large cost savings as it manages the transition away from petrol cars.
We will be back in the morning but you might like to read our live coverage of Apple’s latest announcements here.
European stock indexes rose on Monday, recovering from steep declines the previous week as focus shifted to an anticipated interest rate cut from the European Central Bank on Thursday.
The pan-European Stoxx 600 index closed 0.8pc higher after falling 3.5pc the week prior, its worst week since March 2023.
Major national stock markets advanced between 0.7pc and 1pc on Monday, with French stocks leading gains.
Highlighting the persistent economic worries on the Continent, data on Monday showed investor morale in the euro zone fell for a third consecutive month in September, dropping to its lowest level since January.
Taking centre stage is the European Central Bank’s rate decision on Thursday. Markets broadly anticipate the central bank will ease policy by a quarter point. Traders will be watching for any signals from ECB President Christine Lagarde on the possibility of further cuts this year.
France’s Cac 40 rose 1pc, while Germany’s Dax rose 0.8pc.
Britain is importing record amounts of electricity from abroad at a cost of £250m a month following the closure of coal-fired and nuclear power stations, new analysis shows. Industry editor Matt Oliver reports:
Read the full story…
European and US stock markets bounced higher and the dollar recovered today after big pre-weekend falls over concerns about the health of the US economy.
Global stocks markets slumped Friday following data showing weaker than expected US jobs growth, which raised concerns about the economy.
Following Friday’s sharp losses – which followed drops earlier in the week – a rebound attempt is no surprise, said Briefing.com analyst Patrick O’Hare.
In a note to clients, he said:
The S&P 500 is up 1.1pc, while the Dow Jones Industrial Average is up 1.4pc. The tech-heavy Nasdaq has risen 1pc.
The US Dollar Index – a measure of the American currency against a basket of trade parners’ currencies – is up 0.4pc.
It has been a strong day for the FTSE 100, with the blue-chip index closing up by 1.1pc.
The top riser was gambling giant Entain, up 5.3pc, followed by aerospace manufacturer Melrose Industries, up 4.2pc.
At the other end of the index, Burberry lost 4.9pc, while housebuilder Berkeley fell 3.7pc.
Meanwhile, the mid-cap FTSE 250 rose by 0.8pc.
The top riser was animal genetics company Genus, up 6pc, followed by food manufacturer Bakkavor, up 5.2pc.
Computercenter fell the most, by 6.9pc, followed by Ithaca Energy, down 2.4pc.
Euro zone bond yields are painting an uncertain picture this afternoon, as markets ponder the likely scale of European Central Bank and Federal Reserve rate cuts.
German government bonds rose this morning, before losing ground this afternoon.
Germany’s 10-year bond yield, which is the benchmark for the euro zone bloc, is currently 2.175pc, down from 2.178pc on Friday. It reached 2.239pc earlier today.
The benchmark yield fell last week as data showed the US labour market was cooling. This week, investors are looking to US inflation data due on Wednesday and a European Central Bank interest rate decision on Thursday.
Markets are still digesting Friday’s US employment report, which showed growth in non-farm payrolls was lower than expected in August while the unemployment rate fell to 4.2pc from 4.3pc.
Kit Juckes, chief FX strategist at Societe Generale, said:
US stocks moved higher this afternoon, following their UK and European counterparts, as markets looked ahead to key data and actions from central banks.
It follows a dismal time for the US stock markets last week.
Tim Ghriskey, senior portfolio strategist Ingalls & Snyder in New York, said:
Last week a mixed bag of data, particularly an August employment report, caused investors to dial back expectations that the US Federal Reserve could issue an buger half a percentage point rate cut when it convenes for its policy meeting next week.
On Wednesday, the US Labor Department’s consumer price index is expected to show underlying inflation remains on its meandering path back down toward the central bank’s 2pc goal.
Mr Ghriskey said:
The bond markets are betting too strongly on US interest rate cuts, the chief economist of an global accounting giant has suggested.
George Lagarias, chief economist at Forvis Mazars, said:
Global stocks are in positive territory this afternoon, a big contrast with the pessimism that prevailed on Friday.
The MSCI World index is up 0.4pc.
Chris Beauchamp, chief market analyst at online trading platform IG, said:
Elon Musk has endorsed key findings of a report which criticises the EU as being “stuck in a static industrial structure”.
The report, by Mario Draghi, the former prime minister of Italy and head of the European Central Bank, says that regulation, a lack of innovation, and a failure to create fast-growing companies is holding the Continent back.
Mr Draghi said:
Import tariffs tend to disproportionately hit low-income households, the World Trade Organisation (WTO) warned in a report released today, countering what it sees as backlash against open markets and rising protectionism.
Ngozi Okonjo-Iweala, director general of the WTO, said the report reaffirmed trade’s role in reducing poverty and sharing prosperity “contrary to the currently fashionable notion” that trade was creating a more unequal world.
The United States is poised to hike tariffs on a range of Chinese imports, including a quadrupling of the rate for electric vehicles, while Canada has matched the US EV rate and the European Union had introduced its own EV duties.
China has responded with investigations into EU dairy, pork and brandy imports and rapeseed oil from Canada.
US presidential candidate Donald Trump has proposed a 10pc tariff on all imports and a higher rate for those from China.
The WTO report said that low-income households typically faced a greater burden from higher tariffs.
In the United States, consumer goods from China that are now exempt from import tariffs are predominantly shipped to low-income regions, benefiting poorer households.
Richer households consume a greater share of imports from high-income economies, the report said.
Wall Street’s benchmark indexes rose this afternoon, rebounding from a week of heavy losses as investors remained optimistic about a so-called “soft landing” for the US economy ahead of a crucial inflation report later in the week.
The S&P 500 is up 0.9pc, the Nasdaq by 0.8pc and the Dow Jones Industrial Average of 30 leading companies by about 1pc.
Stocks rose after falling sharply last week, with Tesla adding more than 3pc and Nvidia up 2pc.
Major chip stocks, which also saw heavy selling last week, regained some ground with the Philadelphia Semiconductor index up 1.2pc after tumbling more than 4pc on Friday.
Global markets were rattled last week amid uncertainty over the US economy’s health, adding fuel to an already volatile period that has investors grappling with a shift in the Federal Reserve’s policy and worries over stretched stock market valuations.
Friday’s weaker-than-expected August jobs data spurred worries on economic growth, driving the Nasdaq Composite to its worst week since January 2022, while the S&P 500 saw its biggest weekly drop since March 2023.
The rebound in oil prices did not last long following predictions that prices will keep falling after a bruising past week.
Brent crude was down by as much as 0.6pc to less than $71 a barrel after commodity traders at Trafigura predicted its could fall “into the $60s some time relatively soon”.
With that, I am heading off for the day and I will leave you in the capable hands of Alex Singleton.
US stocks could fall if the Federal Reserve announces a larger-than-expected cut in interest rates next week, a Wall Street bank has warned.
Shares could be hit by a further unwinding of the so-called “carry trade” on the yen, according to Morgan Stanley.
Global stocks plunged last month as investors were forced to reduce their exposure to the investment strategy, in which they borrow in the yen, which has lower interest rates than the US, and then reinvest those proceeds into higher-yielding assets like stocks.
Money markets indicate there is a 28pc chance that the Federal Reserve will cut interest rates by half a percentage point next week in a bid to avoid a severe slowdown in the American economy.
Morgan Stanley strategist Michael Wilson said:
Elon Musk is on track to quadruple his wealth and become the world’s first dollar trillionaire in just three years, new research suggests.
US stock markets began the day higher amid renewed optimism on Wall Street ahead of inflation figures later this week.
The Dow Jones Industrial Average rose 209.7 points, or 0.5pc, at the open to 40,555.11.
The S&P 500 rose 33.6 points, or 0.6pc, at the open to 5,442.07​, while the Nasdaq Composite rose 144.8 points, or 0.9pc, to 16,835.674.
Gas prices have moved higher as the first cold weather of the autumn descended on Europe.
Dutch front-month futures, the benchmark for the continent, gained as much as 2.8pc to more than €37 per megawatt hour as overnight temperatures are forecast to drop as low as 6C by Friday in London.
Meanwhile, there are increasing supply concerns as gas producers on the US Gulf coast face potential disruption from a storm and a major Australian facility has reduced its capacity for safety inspections.
Europe’s leading battery maker is to slash jobs and scale back its commitments as the “challenging” market for electric vehicles bites manufacturers.
Our industry editor Matt Oliver has the details:
Electric car battery maker Northvolt has said it will cut jobs and scale back its operations to focus on its main gigafactory in Sweden.
Several problems with its first gigafactory in Sweden prompted it to launch a strategic review after the promising start-up was plagued by a series of unexplained accidents, with five employees dying since November last year.
The battery maker has struggled financially amid pushing against obstacles to ramp up its production on a larger scale at its first factory.
The company said:
Chief executive Peter Carlsson said: “As difficult as this will be, focussing on what is our core business paves the way for us to build a strong long-term foundation for growth that contributes to the Western ambitions to establish a homegrown battery industry.”
Shares in French fashion designer Kering plunged amid fears about the slowdown in China, which has hampered growth in the luxury goods market.
The Gucci owner’s stock valuation dropped as much as 4.3pc to the lowest level since 2017 as analysts at Barclays cut their rating of the stock from “equalweight” to “underweight”, meaning investors should have limited exposure.
Barclays analyst Carole Madjo said: “Gucci appears particularly hard hit by the Chinese slowdown.”
Kering’s share price has tumbled 43pc so far this year, putting it on track for its worst performance since the global financial crisis.
HSBC is considering combining its commercial and investment bank as new chief executive Georges Elhedery tries to cut costs, it has been reported.
It would mean HSBC’s global banking and markets business – which includes its trading divisions – would combine with its services offered to small enterprises up to large multinationals, according to Bloomberg News.
The bank’s shares jumped 2.6pc after the cost-cutting news, which made it the biggest force behind the FTSE 100’s 0.7pc gain so far today.
HSBC named Mr Elhedery as its first Mandarin-speaking chief executive in July amid investor pressure to shift its headquarters to China.
Europe’s biggest bank promoted Mr Elhedery from finance chief to replace Noel Quinn, who unexpectedly stepped down this year to pursue a better work-life balance.
Trader expectations for the oil market have reached the weakest level in 12 years amid worries about demand.
The “new long position” among traders in oil – meaning the balance of traders expecting prices to rise – has fallen to its lowest level since 2011, according to the ICE Exchange.
Saxo’s head of commodity strategy Ole Hansen said:
Not all analysts think the price of oil is heading downwards from the present level of just under $72 a barrel.
Jeff Currie, chief strategy officer of Carlyle Group’s Energy Pathways, said at the APPEC industry conference in Singapore that prices could rise thanks to interest-rate cuts from the Federal Reserve and a likely recovery in financial positioning, Bloomberg reported. He said:
Oil prices will plunge in the near future, analysts predict, amid doubts over demand from China.
Wall Street bank Morgan Stanley and commodities traders at Trafigura have warned that Brent crude, the global benchmark, will continue a drop that saw oil lose nearly 10pc of its value last week.
Brent has rebounded today after dropping to its lowest level since 2021, nearing $72 a barrel.
However, Trafigura’s head of oil Ben Luckock said the price is “probably going to go into the $60s some time relatively soon,” down from as high as $91.17 in April.
Morgan Stanley has cut its price forecasts for the benchmark for a second time in a matter of weeks, but there are concerns the fall in prices may not benefit drivers.
Figures from the AA last week showed the price of petrol fell to its lowest level in three years but the motoring group warned any further drops could be wiped out if the Government decides to scrap the 5p fuel duty cut in the Budget next month.
Oil prices have fallen since early July amid concerns about demand from the world’s two largest economies in the US and China, while the Opec+ cartel of nations has said it is sticking with a long-term objective to boost production into next year.
US stock indexes were higher in premarket trading as investors remained optimistic about soft landing prospects for the American economy.
All megacap stocks rose ahead of the opening bell, with Tesla leading the gains after a 2pc jump.
Global markets were rattled last week as uncertainty over the US economy’s health rippled across stocks.
Seema Shah, chief global strategist at Principal Asset Management, said:
In premarket trading, the Dow Jones Industrial Average was up 0.6pc, the S&P 500 had gained 0.7pc and the Nasdaq 100 was up 0.8pc.
The pound has slipped ahead of official employment figures out this week as a survey indicated the jobs market suffered its worst month since 2013.
Sterling was down 0.4pc against the dollar to $1.308 as the prospect of a weakening labour market increases the likelihood of interest rate cuts to boost growth.
The pound was down fractionally against the euro, which is worth 84.4p.
A longtime-Alexander McQueen designer behind the Princess of Wales’ 2011 wedding dress has been named the new creative director for Givenchy.
British designer Sarah Burton joins the brand owned by LVMH after nearly three decades at rival Kering under the Alexander McQueen label.
Her predecessor, Matthew M Williams, left Givenchy in December after three years.
Ms Burton is known for flattering, deconstructed styles at McQueen, where she carried on the legacy of the label’s founder, Lee McQueen following his death in 2010.
Her appointment at the French fashion house, founded in 1952 by Hubert de Givenchy, comes as the fashion industry grapples with a global downturn in spending by luxury shoppers, particularly in China, where a property crisis has dampened appetite for high-end goods.
Givenchy is known for sparking the idea of the perfect “little black dress” as a wardrobe staple, after designing a gown worn by Audrey Hepburn in the 1961 film “Breakfast at Tiffany’s.”
Italy has called for a review of the European Union’s 2035 petrol car ban amid fears it risked triggering the industry’s “collapse”.
Hostmore has said it has dropped plans to buy TGI Fridays in the US for £177m, leading its shares to plummet by more than 90pc.
The deal was set to see Hostmore, which runs 87 restaurants in the UK, merge with US-based TGI Fridays Inc, to create a larger company that will remain listed in London.
It described the two businesses as a “natural fit” and which had been combined until 2014.
But today, Hostmore said it was no longer pursuing a takeover following a management change which means it would no longer be able to collect royalties from the TGI Fridays brand.
This could impact the future revenue of the business, with the royalty stream being the main attractive feature for Hostmore in pursuing the deal, it said.
While it is no longer actively pursuing an acquisition, the two company said they were “open to re-engaging discussions” in the right circumstances.
Meanwhile, Hostmore is in the process of selling its UK restaurants to new owners, as it looks to become a fully franchise-operated model.
The process, which is expected to complete by the end of the month, is predicted to result in Hostmore being wound up and delisted from the London Stock Exchange. The restaurants remain open as normal.
Barratt Developments aims to build tens of thousands of houses across the UK as part of a new joint venture with Lloyds Banking Group and Government body Homes England.
The tie-up – called Made Partnership – will focus on large sites, including so-called brownfield developments, as well as new garden village-style communities.
It will look to develop these sites to deliver from 1,000 to over 10,000 homes, as well as community facilities and employment uses.
The partnership sees Barratt – one of the UK’s biggest housebuilders – team up with the Government body responsible for housebuilding and regeneration in England, as well as lending giant Lloyds.
Shares in Barratt rose 1.2pc as it said the long-term joint venture will be initially backed by up to £150m of combined equity funding, equally split by the partners.
Labour has said it wants to build 1.5m homes between now and 2029, a target which would need the sector to significantly boost its output if it is to be met.
Chancellor Rachel Reeves has already said she will reform the planning system to help meet the target, while the Government said it will restore mandatory housebuilding targets for local authorities as part of the drive.
Housing and planning minister Matthew Pennycook said: “A failure to ensure the development system is working properly has held back the delivery of tens of thousands of new homes over recent years and this Government will work in partnership with all those who are focused on turning things around.”
China’s property crisis has yet to reach its worst point, the boss of Standard Chartered has said, as official figures showed spending remained sluggish in the world’s second largest economy.
Bill Winters said the investing environment in China is “difficult” with consumer and investor confidence relatively low.
It comes as inflation in August came in below expectations, raising pressure on Beijing to boost domestic activity amid property sector woes and trade frictions.
The consumer price index (CPI) rose 0.6pc in August, which was up slightly from 0.5pc in July but lower than economists’ forecasts of 0.7pc.
Mr Winters told CNBC:
Oil has risen from its lowest close since 2021 ahead of reports this week that may clarify the demand outlook.
Brent climbed 1.3pc towards $72 a barrel after losing almost 10pc last week, while West Texas Intermediate was up 1.3pc above $68.
Oil’s recent losses have been driven by signs of slowdowns in the US and China, endangering demand at a time of abundant supply.
Traders will this week look at forecasts from the Opec cartel, the Energy Information Administration and the International Energy Agency.
A storm in the Gulf of Mexico is forecast to strengthen into a hurricane early this week, risking supplies.
Tesla chief executive Elon Musk posed for selfies as he joined a host of celebrities in the Arthur Ashe Stadium at Flushing Meadows to watch the final of the US Open.
The SpaceX boss and owner of social media site X, formerly known as Twitter, watched World No1 Jannik Sinner outclass American pretender Taylor Fritz in a straight-sets victory.
The FTSE 100 rebounded from six sessions of declines as investors await official UK jobs market data this week.
The blue-chip index and the FTSE 250 were both up 0.5pc. The FTSE 100 last week posted its worst weekly performance since October 2023.
Travel and leisure stocks led sectoral gains as Entain jumped 7.9pc after the gambling group said its online revenue growth in the second half of this financial year was ahead of its expectations.
Industrial metal miners and energy shares rose as much as 1.5pc and 0.8pc, respectively, while heavyweight banks advanced as much as 1.3pc.
It comes as a survey of recruiters showed that Britain’s jobs market suffered its worst month since 2013, which could bolster the case for interest rate cuts from the Bank of England.
By contrast, Burberry that lost 3.3pc to take it to the bottom of the FTSE 100 after Barclays downgraded the stock to “underweight” from “equal-weight”.
British restaurant operator Hostmore plummeted by more than 90pc after it dropped plans to buy pub chain TGI Fridays.
Investors are focused on employment figures and UK GDP data out this week.
Revolution Bars has named former Patisserie Valerie boss Luke Johnson as its new chairman as it tries to move past a restructure that saw its close a dozen venues.
Mr Johnson, who has also been chairman of PizzaExpress, holds 20pc stake in the chain of bars, known as Vodka Revs to its customers.
The serial leisure entrepreneur said he was tricked by a fake picture of Patisserie Valerie’s finances during his time as executive chairman of the company.
Patisserie Valerie crashed into administration in January 2019 after the discovery of a £94m black hole in its accounts.
Mr Johnson takes over from Keith Edelman who is retiring after holding the role at Revolution Bars since 2015.
Revolution chief executive Rob Pitcher said: “We are excited to be working with Luke who is vastly experienced in the hospitality sector and brings a wealth of knowledge to enable the next phase of the Group’s development.”
European stock markets climbed at the open, recovering slightly from heavy pre-weekend falls amid fears about the US economy.
In the eurozone, the Paris Cac 40 index gained 0.4pc to 7,380.88 points and Frankfurt’s Dax rose 0.4pc to 18,368.13 as investors await an expected interest-rate cut from the European Central Bank later this week.
American candy shops and illicit online retailers have driven a £1bn boom in small business tax evasion since the pandemic, the National Audit Office (NAO) has warned.
Our deputy economics editor Tim Wallace has the details:
The FTSE 100 bucked the trend in global markets to begin the week higher amid a rebound in oil prices.
The UK’s blue-chip index was up 0.6pc to 8,227.11 while the midcap FTSE 250 rose 0.5pc to 20,602.26.
Ladbrokes and Coral owner Entain said online gaming sales have risen faster than expected in recent months, as it is set to benefit from the start of the American football season.
The company, which is one of the world’s biggest sports betting and gaming firms, said it was making further progress in the US through its BetMGM sports betting app, which was launched ahead of the kick off of the new NFL season.
It said sales momentum had continued into the second half of the year, with online net gaming revenues – meaning the total amount of cash pocketed after paying out winnings to punters – growing ahead of its own expectations.
The business had previously expected online gaming revenues to decline this year, but upgraded this outlook after a stronger first-half.
Ryanair boss Michael O’Leary has issued fresh calls for the resignation of the chief executive of air traffic control (ATC) provider Nats.
Mr O’Leary urged Martin Rolfe to step down and “allow someone competent” to take over after flights were disrupted at Gatwick Airport on Sunday due to “Nats staff shortages”.
Staff shortages at Gatwick’s control tower led to at least 100 flight cancellations on Sunday, according to Travel Weekly.
Ryanair’s chief executive has repeatedly criticised Mr Rolfe, particularly over the widespread disruption at UK airports during last year’s August Bank Holiday Monday, which was caused by a Nats technical failure.
Nats previously said it is “working in line” with a staffing plan agreed with Gatwick bosses when it took over the provision of ATC services at the airport in October 2022, which includes training further controllers.
Mr O’Leary said:
Supermarket chain Aldi unveiled its £800m plan to ramp up expansion across the UK as it reported surging annual sales and profits.
The discount grocer said it notched up record UK and Ireland sales of £17.9bn for 2023, up 15.4pc on £15.5bn the previous year.
Pre-tax profits jumped to £536.7m from £152.6m in 2022, which Aldi said was also down to cost savings across the business.
Aldi has announced plans to open 23 new stores by the end of the year as part of an £800m investment in its British estate.
The German discounter will open sites including Muswell Hill in London and Caterham in Surrey as part of its push to expand its number of supermarkets from more than 1,000 to 1,500.
Aldi said it has invested almost £100m in over 300 price cuts in the last three months, and earlier this year it sealed a £750m deal with the family-owned, Kent-based fruit farming business AC Goatham & Son – which will include the first ever ‘Aldi Orchard’ on a 200-acre plot on New Green Farm near Gravesend.
It said it would also refurbish 100 existing stores and expand its distribution centres under a two-year £1.4bn investment plan.
Aldi UK and Ireland chief executive Giles Hurley said:
BDO found that output across the services sector rose to a two-year high in August with a reading of 99.03.
Growth was driven by an increase in new contracts, and summer tourism spurring more consumer and business spending, the report found.
Kaley Crossthwaite, a partner at BDO, said that services continued to be the “cornerstone of economic growth”.
She added:
The jobs market has suffered its worst month in more than a decade, according to new analysis that will add to pressure for a further interest rate cut.
A report by accountant BDO found that the strength of the jobs market declined for the 14th consecutive month in August, with a reading of 95.89.
Anything over 95 signals growth, meaning recruitment is still just expanding, but this was the lowest score since January 2013.
The jobs market has faced a declining number of vacancies, with many businesses slowing or freezing hiring as they weather tougher economic conditions.
It suggests higher interest rates are starting to bite. The BDO index – a “poll of polls”, made up of data from the UK’s most influential business surveys – is likely to be among data considered by Bank of England policymakers as they weigh up whether to cut borrowing costs again later this month.
There were also more people claiming unemployment-related benefits in August, at the highest level since December 2021, according to figures from the Office for National Statistics.
Thanks for joining me. We begin the week with data on the UK jobs market, which has suffered its worst month in more than a decade, raising pressure on the Bank of England to cut interest rates.
Recruitment expanded at its slowest pace since 2013 in August, according to a report by accountant BDO.
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Asian stocks fell after another rout hit Wall Street on Friday, as highly anticipated jobs market figures came in weak enough to add to worries about the economy.
The Nikkei 225 index was hovering around its lowest level in almost a month, as it slipped 2.1pc in morning trading to 35,613.32.
Japan’s gross domestic product grew by 2.9pc in the second quarter compared to the previous three months, according to revised data from the Cabinet Office, which was below expectations.
Stocks in Chinese markets also racked up losses after worse-than-expected inflation data disappointed investors.
Data from the National Bureau of Statistics on Monday showed deflationary pressure continues to loom large, as the consumer price index grew by 0.6pc in the year to August.
Hong Kong’s Hang Seng index declined 1.8pc to 17,123.90 and the Shanghai Composite index was down 0.9pc, at 2,740.71.
Australia’s S&P/ASX 200 dipped 0.6pc to 7,967.10. South Korea’s Kospi lost 0.8pc to 2,523.86.
US stocks tumbled on Friday after new data showed weaker than expected US jobs growth, reviving fears that months of elevated borrowing costs are putting pressure on the economy.
The S&P 500 fell 94.99 points, or 1.7pc, to 5,408.42. The Dow Jones Industrial Average fell 410.34 points, or 1pc, to 40,345.41. The Nasdaq composite fell 436.83 points, or 2.6pc to 16,690.83.