By Connor Campbell, Financial Analyst, Spreadex
The FTSE once again found itself struggling for momentum this Thursday, investors unwilling to do too much until the morning’s main events are over and done with.
Dipping 0.1% the UK index is still above 7400, but only just, pinned back by its red-tinged commodity sector (bother copper and Brent Crude have fallen roughly half a percent since the start of the session). The pound fared a bit better, clawing 0.2% off the euro while sitting unchanged at an 11 month high against the dollar.
The starter dish for the UK markets is latest services data. So far this week has been a mixed bag for PMIs; the manufacturing figure easily outstripped estimates, only for the construction reading to hit an 11 month low. Analysts are expecting the services sector to be closer to the former, with forecasts suggesting a slight increase from 53.4 to 53.6 month-on-month.
Once that’s out of the way attention will turn to the main course: the Bank of England ‘Super Thursday’. An unexpected dip in inflation in June will likely mean that there’s little drama in this midsummer MPC meeting. However, there has been enough hawkish squawking in the last few weeks and months that any decision could be far from unanimous. Just how split Carney and co. are will help dictate the pound’s movements this afternoon and, therefore, play a role in whether the FTSE ends the day above or below 7400.
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