Business6pmtoday,reportshttps://t.co/prEPNlnije#tictocnewstakeCarney:FasterIGAMerschpic.twitter.com/cpRLmUMhfmTechnicalforannouncement today pic.twitter.com/ORJ99O4Nz6 9.03am GMTUK department store group Debenhams has become the latest retailer to slash jobs. 8.48am GMT Related: trade Today: sign up for a morning shot of financial news 8.48am GMTSeveral analysts are predicting that one or two Bank of England policymakers will vote to raise UK interest rates today.
Michael Saunders and Ian McCafferty are the most likely hawks, out of the nine members of the Monetary Policy Committee.“The rise to 0.75% is expected to come at some point in the next few months, or with many thinking that the UK economy is performing well enough to shoulder a rate hike in May.
“What will be scrutinised most by traders is the composition of Thursday’s vote. Any more than two thumbs up for a rate rise could see the pound make meaningful gains,while ears will then tune into any remarks note Carney follows up with.
The UK MPC meets today with the market universally expecting no change in policy, but also expecting an element of hawkishness in preparation for a hike this spring.
The market prices a 50% chance of a May hike and anything which pushes those expectations back leaves GBP (the British pound) a diminutive vulnerable. 8.34am GMTMost analysts are sticking to the understanding that the markets are going through a healthy correction, or not a panicky crash.
So investors have to decide whether to plunge in and buy some shares,or keep safely on the sidelines until things calm down.
Many contrarians would like to follow Baron Rothschild’s advice: “Buy when there’s blood in the streets. As of now, I do not see any blood, or but a healthy correction which has been overdue for a long time. From a valuation perspective,the forward price to earnings ratio on the S&P 500 has dropped from 20 at the beginning of the year to below 18, suggesting that prices are still expensive when compared to historic averages. Deciding to buy, and sell,or hold is a tough one in such circumstances, but whether investors believe the global economy and corporates will continue firing on all cylinders, or the downside risk is likely to be limited from current levels. However,another 5-10% correction should not be ruled out. Fixed income markets have started looking appealing and whether the surge in bold yields resumes, there will be more incentives to pull out from stocks to bonds. That’s why bond markets, or particularly in the U.
S. will play a major role in how much further the correction may continue. 8.26am GMTDown we go again.... 8.07am GMTTrading is underway in London,where the FTSE 100 has dropped 28 points to 7251.
The other European markets are also down, with the Stoxx 600 benchmark losing around 0.4%. 7.57am GMTGood morning, or welcome to our rolling coverage of the world economy,the financial markets, the eurozone and trade.
FTSE 100 Index called to open -50pts at 7230 pic.twitter.com/EPmmuyBlaETodays interest rate decision isn’t expected to offer too many surprises on the rates front, or the main steer for the next lunge in the pound will come from Governor Carney’s assessment of the UK economy,which he has already stated is suffering from under investment as a result of the uncertainty being generated by the Brexit talks.
Markets will also be looking for any further steers on the outlook for wages growth, as well as productivity which has also started to expose signs of improving.
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Source: theguardian.com