Index Spread Betting Markets Fall Ahead of Expected Downgrade to UK Growth Forecasts
In mid-morning trade the FTSE 100 is down 20 points, as dividend dates weigh on the leading index.
Yet again we face a day without much economic data. The main event of the session will be the Bank of England’s inflation report, which is expected to see yet another downgrade to the economic growth forecast for the UK.
In fact, it should be called a ‘no growth forecast’, since that is what the Bank is expected to do, having predicted 0.8% growth just three months ago.
Whether this reinforces expectations of more QE or a cut to the already historically low interest rate remains to be seen.
Index spread betting markets continue to cast around for reasons to extend this current rally. However, with policymakers on holiday and economic data thin on the ground, it might prove problematic to keep the current bullish outlook going for much longer.
Standard Chartered is rallying this morning, up 6%, but the storm over the Iran transactions is unlikely to dissipate.
Ahead of the US open, we expect the S&P 500 to start down 4 points at 1393, with the Dow down 30 points at 13,089.
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Financial Market Comments from Ben Critchley, Sales Trader, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
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