Spreadex Market Update
Pound flat ahead of ‘Super Thursday’ lunchtime, oil and mining stocks weigh on FTSE once again
Monetary Policy Committee official bank rate votes, meeting minutes and the central bank’s inflation report all arrive, together for the first time, at midday, with a conference from Carney soon after. The expectation is that at least two, and potentially three, of the committee are likely to vote for a small rate-hike whilst Carney will be expected to elaborate on his hawkish comments about an end of year lift-off after the quarterly report is revealed. Like his American counterpart Janet Yellen, Carney is still waiting on stronger inflation and more robust wage growth to join the fairly healthy GDP data, this trifecta of figures lying at the heart of the Bank’s rate hike decision.
In anticipation of this information overload the pound is flat against the euro and dollar, but with sterling looking at an extra injection of gains if the meeting minutes are as hawkish as forecast. So far this morning the FTSE is giving back some of its post-6700 growth, as Brent Crude dips under $50 per barrel once again, taking with it the UK index’s oil and mining stocks. The FTSE will be hoping its manufacturing and industrial production figures can provide some respite; improvements in the former and a decline in the latter is the forecast form.
Despite impressive monthly German factory orders the DAX, and CAC, opened to losses this Thursday morning, with the latest commodity drop-off adding to the market’s bearish tone. There is little for Eurozone investors to chew-on today, with focus on the Bank of England and tomorrow’s US non-farm figures. News from Greece will, of course, be of interest, but the country has been unusually quiet of late as the third bailout talks continue.
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