FTSE Slips Ahead of Key Rate Decisions

The FTSE 100 got off to a muted start this morning, re-tracing all of the gains that it made on Friday, and shedding a total of 20 points during early trading.

shareprices.com - Monday, October 30, 2017

Printable version email to a friend Subscribe to shareprices.com newsfeed

The pound has made some gains against the dollar and the euro, and analysts expect to hear of interest rate hikes from the BoE and the Federal Reserve over the course of this week.

Markus Huber, a trader working at City of London Markets Ltd said that the FOMC meeting on Monday, and the potential announcement of the new head of the FED are key fundamentals that are coming this week. He also noted that it’s possible that the first arrests will be made regarding the probe into whether Russia collaborated with the Trump team to interfere in the US elections.

Overall, Huber said that sentiment was positive going into this week, but it is not unusual to see stocks consolidate, or for there to be some profit-taking in anticipation of major events.

Housebuilders struggled this morning, as Barclays Capital downgraded the ratings of several companies in the industry, including Persimmon and Berkeley Group. There were some strong performers, though - DIY retailer Kingfisher gained 3.2 percent, after having its rating upgraded to ‘buy’ from ‘neutral’ by Goldman Sachs.

For now investors are watching the situation in Catalonia with caution, and will also be waiting for interest rate decisions from the Bank of England. The expectation is that the MPC meeting will see the first UK rate increase in more than ten years.


Latest News

Related News

FTSE 100 Latest

7,715.4415.35  % fall