Spreadex Market Update
FTSE and pound keep quiet ahead of Bank of England Super Thursday
For a long time it seemed that ‘Super Thursday’ would remain a thoroughly ironic title; now things are a bit different, with the Bank of England backed into a corner by a combination of a burgeoning post-Brexit slowdown and their own promises of action. The markets still don’t completely know what the MPC is going to produce this afternoon, explaining why both the FTSE and the pound are proving to be incredibly reticence to do much of anything ahead of the lunch-time reveal.
It seems to be widely accepted that the Bank of England is going to cut rates this Thursday (though it is worth adding that it was widely accepted that the Bank of England was going to cut rates last month, and that didn’t exactly pan out as expected); the big question is by how much? Consensus suggests a halving of the current rate to 0.25%, however there have been some analysts talking of it falling as low as 0.1%. Whether the MPC announces an extension to the current QE programme is the other big unknown, and could be the key to the FTSE’s reaction after the statement this afternoon.
While the UK market fret over what is to come the Eurozone indices are making the most of the morning’s calm (especially since the euro is likely to surge once a cut is announced). The DAX is up around 90 points, crossing the 10250 mark in the process, while the CAC has risen just over half a percent.
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