Spreadex Market Update

Is the Bank of England preparing for an interest rate hike?



The BoE have a crucial decision on their hands after inflation figures remain high. Inflation is already 1.1% above their target level of 2%, plus we have seen a much better than expected economic recovery from the pandemic.

Could this mean we are about to see a rate increase from the current record lows of 0.1%, and if so, by how much?

FTSE hits low of -0.52% not only due to worries over interest rates, but also thanks to large oil companies losing ground despite rising gas and oil prices. With BP and Shell both dropping by 3.1% and 2.36% respectively.

However, this is not expected to last as both companies are posting high profits for the year so far.

Investors seem to be bracing themselves not only for the BoE decision tomorrow, but also keeping a keen eye on the Federal Reserve for news on bond purchase tapering today at 6pm.

In fact, US markets closed on Tuesday at a record high ahead of the key speech, as many expect to see a strong rally in the dollar index. US equity markets are also expected to respond positively to this news.

Currently US markets are treading water, presumably in anticipation on the imminent news.

SEARCH FOR AN ARTICLE:

Enter a keyword and search for all relevant articles

MARKET ANALYSIS

RECENT POSTS

Weekly Trading Update

Trading Week Ahead

Read More

Financial Trading Blog

UK Stocks Set Stage for Comeback

Read More

Daily Market Update

20.12.24 Friday Morning

Bitcoin soared 130% in 2024, hitting all-time highs due to favourable policies under the incoming Trump administration....

Read More

Economic Diary

20.12.24

Read More

Daily Market Update

19.12.24 Thursday Afternoon

UK equities present a mixed picture heading into the festive period, but certain sectors might outperform next...

Read More

Daily Market Update

19.12.24 Thursday Morning

The yen hit a one-month low against the dollar after the Bank of Japan held rates steady and provided no new guidance...

Read More

DISCLAIMER


Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.

Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.

The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.