August’s awful open continued from all angles on Thursday, with the FTSE, Dow Jones and pound each enduring a bloody session.
The day was meant to be defined by the Bank of England’s second hike this decade, with interest rates now at 0.75% for the first time since the financial crisis. However the announcement got somewhat lost in the shuffle, investors more focused on the Fed’s own statement and the prospect of further trade war escalation from Donald Trump.
Still, Mark Carney and co. did manage to make the pound more miserable than it already was, stating that ‘any future increases in Bank Rate are likely to be at a gradual pace and to a limited extent’. Though such dovishness was hardly a surprise, it nevertheless saw sterling extend its losses against the dollar, with cable dropping under $1.305 after falling 0.6%, while sending the currency 0.3% lower against the euro.
Sterling’s woes just about took the edge off the FTSE’s own losses, though in the grand scheme of things that didn’t mean much, with the UK index stuck the wrong side of 7600 after plunging just shy of 1%. Over in the Eurozone the DAX was even worse, dropping nearly 200 points, with the CAC slipping 0.6%. As for the Dow Jones, the fact it trimmed its decline to 100 points is something of a miracle, given after the bell it was trading 200 points lower.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.