World markets at new highs; UK zero-hours contracts fall - as it happened

All the day's economic and financial news, as global markets touch new record levels ahead of Wednesday's Federal Reserve meeting

• Number of UK zero-hours contracts falls
• 1.4m zero-hours contracts in use, down from 1.7m
• Introduction: Markets keep going up....
• Investors focused on the Fed tomorrow

5.51pm BST

World markets are continuing their record runs, unperturbed by Donald Trump's rhetoric against North Korea at the UN and despite some caution ahead of the latest Federal Reserve interest rate decision on Wednesday.

The MSCI All Country World Index, a broad measure of global shares, reached a new peak of 487.48, while the Nikkei closed just under 2% higher. On Wall Street the Dow Jones Industrial Average and S&P 500 both hit new peaks, while European shares managed to edge higher. The final scores showed:

5.26pm BST

The pound has had an uncertain day.

Initially sterling slipped back in the wake of Bank of England governor Mark Carney's comments on Monday that any rate rises would be gradual and limited.

4.06pm BST

President Trump's speech to the UN had a few hair raising moments, including the threat that the US might have to "totally destroy North Korea."

But markets seem to be fairly unmoved by this and all of Trump's other state of the world comments. Wall Street is off its best levels but still up around 16 points and close to its all time highs. Dennis de Jong, managing director of UFX.com, said:

Wall Street opened this morning at a record high and, despite a few concerns over the contents of his speech, Donald Trump's maiden address to the United Nations hasn't upset the applecart too much.

While the President continued his hard-line stance on North Korea, the threat of war seems less likely than it did a couple of weeks ago. More importantly for traders, Trump again reiterated his desire to again put America first - continuing the run of confidence in the US market.

3.00pm BST

The outlook for global growth is positive, says ratings agency Fitch, but this could be tempered by the withdrawal of central banks' stimulus measure. In its latest global credit outlook report, Fitch says:

Global rating outlooks remain on an improving trend and are on balance less negative that at the start of the year across most rating sectors....

However the improving outlook for global credit quality is underpinned by years of loose central bank monetary policy, including quantitative easing, as well as what are now the strongest world growth conditions since 2010.

2.36pm BST

Ahead of Wednesday's decision from the US Federal Reserve on interest rates and the future of its monetary policy, Wall Street has opened at yet new heights.

The Dow Jones Industrial Average is up 0.15% at a record 22,366 while the S&P has edged up 0.12% to a new high. Apart from the Fed meeting, the other main event exercising investors' minds is President Trump's speech at the United Nations.

2.23pm BST

Some disappointing data from the US, just as the Federal Reserve deliberates on interest rates and monetary policy.

The current account deficit - the difference between goods and services flowing into and out of the country - rose from $113.5bn in the first quarter to $123.1bn in the second three months of the year compared to expectations of a figure of $115.1bn. The first quarter figure was revised down from $116.8bn.

2.06pm BST

Following the Guardian's reports on the debt time bomb, with huge borrowings being racked up by Britain's most vulnerable consumers, there are calls for an independent inquiry. Phillip Inman and Jill Treanor write:

The chairs of two powerful parliamentary committees have urged the government to set up an independent public inquiry into the 200bn of credit amassed by households, as Britain's debt crisis raises alarm among senior MPs.

The call by Rachel Reeves, the Labour chair of the business select committee, and Frank Field, the Labour head of the work and pensions select committee, comes as the Conservative-led Treasury select committee plans to hold meetings around the country to examine the impact of debt on individuals and households.

Related: Public inquiry needed into UK's 200bn debt crisis, say senior MPs

Related: Britain's debt time"bomb: FCA urges action over 200bn crisis

Related: Car finance: the fast lane to debt?

1.56pm BST

Sterling has edged higher following a report that Boris Johnson might resign by the weekend if the prime minister does not change her Brexit stance.

It is now up 0.25% at $1.3526, after an initial dip. The Foreign Office has no immediate comment on the Telegraph story, and Johnson told the paper he will not resign. But the ripple in the market shows investors are nervous about the whole Brexit situation. David Cheetham, chief market analyst at online trader XTB, said:

The rise in sterling since the news is modest compared to recent rallies but it shows nonetheless that the markets are closely watching the latest political developments with a keen eye. Recently economic data and monetary policy have usurped politics in driving the pound, but the latest news is a timely reminder that the political situation can quickly become front and centre once more after what has been, since the Brexit vote at least, a relatively prolonged period on the back-burner.

1.47pm BST

European stock markets are hovering around six-week highs today, as the City awaits tomorrow's Federal Reserve meeting.

Britain's FTSE 100 is up around 0.2%, while Germany's DAX is down a smidgen.

The Fed finally looks set to announce the normalisation of its balance sheet and we think the necessary reinvestment tapering will begin in October.

It is not likely to change its growth and employment forecasts significantly, though with inflation on the low side of expectations, some of the base line numbers may be adjusted downwards. A rate hike is still on the cards for this year, unless inflation comes in even further below target.

1.09pm BST

I missed this earlier, but German investor confidence has bounced back in August.

The ZEW Institute's monthly barometer of financial morale jumped to 17 this month, up from 10 back in August, and much higher than expected.

""Solid growth in the second quarter, recent big increases in banks' lending business and growing investment from firms and the state".

German investors more & more upbeat on Italy, but still gloomy about the UK outlook. From today's #ZEW survey: https://t.co/T34qBGkePa pic.twitter.com/ptzLb4CEdh

12.27pm BST

In other news, a new survey has shown that Europe's builders cracked on in July.

Construction sector production in the EU rose by 0.5% per month in July, and by 0.2% in the eurozone, Eurostat reports.

"EZ construction will support GDP growth in Q3." @ClausVistesen on Construction/ZEW, Eurozone & Germany, July/September #PantheonMacro

Among Member States for which data are available, the highest increases in production in construction were recorded in Hungary (+22.6%), Sweden (+21.2%), Poland (+19.8%) and Slovakia (+14.7%). Decreases were observed in the United Kingdom (-1.1%) and Italy (-0.4%).

12.26pm BST

Zero-hours contracts are a particular issue for young workers.

Budgeting, paying your bills and planning ahead can be impossible when you don't know how many hours you will be working or how much money you will have coming in each month. For some, an inability to balance precarious shifts with childcare can make working impossible.

12.04pm BST

Here's Richard Partington's news story on today's data:

Related: Number of workers on zero-hours contracts drops to three-year low

11.57am BST

The storm of controversy over zero-hours contracts in recent years has forced some employers to ditch them.

Instead, people are being hired on contracts that only guarantee a small number of hours each week - which can then be increased as needed.

Zero hours contracts have received mass negative publicity regarding their use and the unfair treatment of staff working under these contracts. Large companies, such as McDonalds, have been seeking a move away from these contracts by giving staff the opportunity to request a contract with guaranteed hours, calculated as an average of the hours worked under their previous zero hours contracts. It is likely many other companies are recruiting on similar contracts containing a small number of guaranteed hours and then requesting staff to work extra hours as and when to meet business demands.

Moving away from the name 'zero hours contracts' removes the negative connotations associated with these contracts and improves public perception of the company. It can also make recruitment easier by defining available positions as flexible and guaranteed hours, rather than zero hours.

11.10am BST

On average, someone on a "zero-hours contract" usually works 26 hours a week, today's report shows.

They're also more likely to be female.

People on "zero-hours contracts" are more likely to be young, part-time, women or in full-time education when compared with other people in employment.

10.44am BST

The TUC have welcomed the drop in zero-hours contracts, but also wants more action.

General Secretary Frances O'Grady says:

"1.4 million zero-hour contracts is 1.4 million too many.

"While it's good that some employers have ditched them as a result of union campaigning, let's not pretend that life at the sharp end has become easier overnight.

10.27am BST

The Labour Party says the drop in zero-hours contracts isn't enough - it wants them banned altogether.

"It is a national scandal that there are 1.4 million contracts that don't guarantee minimum hours, with people stuck in limbo in insecure work, not knowing how much they'll earn from week to week, unable to budget for basic necessities and unsure if they can even pay the rent.

The Government urgently needs to get a grip on the broken labour market which is rigged against workers and adopt Labour's policy to ban zero hour contracts."

10.21am BST

This chart from today's report shows how the number of people on zero-hours contracts appears to have peaked....

10.12am BST

The number of people on zero hours contracts has fallen to its lowest level since 2014, suggesting demand for these contracts may have peaked.

A new report from the Office for National Statistics shows that there were 1.4 million contracts which didn't guarantee any actual work, down from 1.7m a year earlier.

In May this year there were 1.4m employment contracts in use that didn't guarantee minimum hours, down from a peak of 2.1m two years previously.

Coupled with figures we've already seen from the Labour Force Survey showing a small fall in the number of people who say they're on zero-hours contracts, it seems possible that the trend towards this type of work has begun to unwind.

1.4mn zero hours contracts in the UK, with 883k people reporting that their main job is on a ZHC. On both measures, numbers lower than 2016. pic.twitter.com/tPhtY6WMXX

10.01am BST

It's a dark morning for Toys R Us.

The world's biggest toy retailer has been forced to seek bankruptcy protection this morning, in an attempt to tackle its $5bn debt mountain.

Related: Toys R Us files for bankruptcy in the US and Canada

9.34am BST

There are plenty of issues for investors to watch closely this week, from interest rate decisions to Hurricane Maria as it heads towards the British Virgin Islands.

Matt Simpson, senior market analyst at Faraday Research, explains:

With President Trump expected to talk tough on North Korea and Iran during his first U.N. speech today, investors will be keeping a close eye on any repercussions further out.

That we also have two Central Bank meetings [in America and Japan] and the all-important Brexit speech from Theresa May to come this week, means economic data is likely to be less pressing for investors.

9.14am BST

Britain's accountancy watchdog has ended its probe into KPMG over its auditing of HBOS, the bank which failed during the financial crisis almost a decade ago.

In early 2008 HBOS concluded that its financial statements for the year ended 31 December 2007 should be prepared on a "going concern" basis. HBOSdid not expect market conditions to worsen and judged that it would be able to fund itself. The auditor considered and accepted this conclusion. HBOS published its audited financial statements in February 2008 on that basis.

The evidence of market conditions at that time did not show this decision of HBOS or the auditor's assessment of it to be unreasonable at the time.

8.55am BST

The pound is rallying this morning, after Bank of England governor Mark Carney dropped another hint that interest rates will rise soon.

Sterling is up 0.3% against both the euro at a1.199, and the dollar at $1.354.

He said this in 2014 and 2016 and then CUT interest-rates! #Carney https://t.co/6wsL7Xr57K

8.40am BST

MSCI's All Country World Index, a broad measure of global shares, has hit a new record today.

It struck 486.95 for the first time, thanks to the Nikkei's rally and last night's Wall Street action.

8.15am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

"Investors were worried about 'Abexit' before, but if he calls a snap election and his ruling party wins, it would strengthen the foundations of his once-weak government base."

$FTSE $DAX $CAC #Eurostoxx futures point lower before the European open. pic.twitter.com/GpISuuXdRG

US stock markets also continued where they left off on Friday posting new record highs as investors geared up for tomorrows Federal Reserve rate meeting and press conference, with the US central bank expected to embark on the first baby steps on the paring down of its balance sheet.

Despite recent poor US economic data there still seems to be a belief amongst some in the markets that we could see one more rate hike this year, something that may well be borne out by tomorrow's rate dot plot projections. Whether the projections survive their exposure to the real world of the hurricane clear up of Harvey and Irma is another matter, not to mention the prospect of further hurricanes with the latest in the form of Maria as it moves towards Puerto Rico.

Related: Hurricane Maria: 'we have lost all' says Dominica prime minister - live