⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

London pre-open: Stocks seen down ahead of BoE announcement

Published 23/03/2023, 07:29
London pre-open: Stocks seen down ahead of BoE announcement
UK100
-
FTMC
-
FTLC
-

Sharecast - The FTSE 100 was called to open 25 points lower at 7,542.

On Wednesday, the Fed hiked rates by 25 basis points despite the recent turmoil in the banking sector,

CMC Markets analyst Michael Hewson said: "While this was broadly in line with expectations, a tweak to the statement was perceived to be more dovish, moderating the language by removing the reference to ‘ongoing increases will be appropriate’, with ‘some additional policy firming may be appropriate’.

"This helps to give the Fed wriggle room to pause at the next meeting if the data permits, as well as indicating that the end of rate rises could be close.

"This change saw yields, as well as the US dollar fall sharply, however, US markets after initially pushing higher also fell back and closed lower, after comments from US Treasury Secretary Janet Yellen, in separate comments to US lawmakers, said that there was no commitment to extending banking deposit insurance beyond the current $250k cap.

"Powell also admitted that a rate pause was considered due to the banking crisis, while also going on to say that the prospect of rate cuts this year was not being considered. A cursory analysis of the latest dot plot chart confirmed that thought process, even as markets continued to price that very possibility."

A rate decision from the Swiss National Bank is due at 0830 GMT, while the BoE will make its announcement at midday.

In corporate news, automotive distributor Inchcape reported a rise in annual earnings driven by growth in new and used vehicle sales and higher prices.

Adjusted pre-tax profit rose 50% to £373m, while revenue grew 8% to £8.1bn. The total dividend was lifted 28% to 28.8p a share.

Elsewhere, LondonMetric Property said it had sold a portfolio of three multi-let industrial estates for £46m.

The estates, in England's Midlands, total 446,000 sq ft across 113 units and generates £2.9m of yearly rental income. The deal reflects a net interest yield of 5.8% with the disposal slightly above book value at September 30, 2022.

Read more on Sharecast.com

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.