Traders Await BoE and ECB Rates Decisions: Financial Spread Betting News
Financial Market Comments from Anthony Grech, Market Strategist, IG Index.
The FTSE 100 has fallen in early trading as investors await the key Bank of England interest-rate decision at lunchtime.
The UK’s blue-chip index lost 0.4% this morning, down to 5514, as traders appeared wary of making any significant moves before the BoE make their announcement at 12 noon (London time).
Schroders were the biggest winners, up 3.49% to 1069p after reporting record net inflows of £15 billion.
Moving in the opposite direction was Aviva, down 2.18% to 381.7p despite swinging back into full-year profit after losses of £915 million in 2008.
Britain’s second largest insurer recorded a net income of £1.09 billion, but this was below market expectations.
It is unlikely that the BoE will announce any change in the interest rate or extend the QE programme it said it was halting last month.
The ECB too is set to make a decision about Eurozone rates this afternoon, and it is also widely expected to maintain rates at current levels.
Despite the likelihood of there being no change whatsoever in the cost of borrowing, it still appears that investors are treading cautiously this morning.
They may be more concerned about how the EU will react to Greece’s proposed austerity programme, as well as the Non-farm and jobless data due out of the US later today.
This afternoon’s session could be a volatile one, but until all the cards are on the table it seems that no one is willing to show their hand just yet.
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Good Luck!
DB
The above comments do not constitute investment advice Clean Financial accepts no responsibility for any use that may be made of them.
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