Following Wednesday’s super-surge the European markets entered Thursday’s trading at a light jog.
The FTSE could only add 0.1% after the bell, though its reticence was understandable. For today brings May’s Bank of England meeting, one that comes complete with a fresh set of economic forecasts for the UK.
From expectations of 5% growth in 2021 back in February, Andrew Bailey and the rest of the MPC are set to announce that the country will instead see GDP at 7% this year.
However, those revised forecasts come with a potential catch. Much like in the US, the increasing strength of the UK economy’s rebound will cause the central bank to mull over tapering its current stimulus support.
Any hawkish signals could well send the FTSE back below 7,000 – it’s currently at 7,060 – while leaving the pound primed to build beyond $1.39 against the dollar.
Without the anxieties of a central bank meeting, the Eurozone indices were slightly freer this Thursday. Both the DAX and CAC added half a percent after the bell, pushing the former above 15,200 while pushing the latter to a fresh peak of 6,330.
As for the US, the Dow Jones is heading for a record open of 34,300 this afternoon, with the futures pointing to a 0.2%, or 70-point, increase.
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