The Market Close - ‘BOE suggests there could be a rate rise ‘in the coming months’ - Collins Sarri Statham Investments

Today's Closing Update

U.S. Shares benchmarks traded mostly lower following data on jobless claims and inflation.

European and U.K. Shares inched lower, weighed down by weaker mining stocks.

Bank of England signalled that it might take back some of its stimulus relatively soon; “in coming months” to be more exact, leading at least a few economists – but not all – to the conclusion that a hike in Bank Rate might be on the cards for as soon as next month. As expected in financial markets, the Monetary Policy Committee announced that the decision to keep Bank Rate unchanged had been taken by a vote of 7 to 2. Regarding the outlook for Bank Rate, policymakers at the BoE said that if activity continued to follow the path outlined in the August Inflation Report, then “all MPC members continued to judge that […] monetary policy “could need to be tightened by a somewhat greater extent over the forecast period than current market expectations.”

US consumer prices rose more quickly than expected last month on a spike in gasoline prices. Headline CPI was up by 0.4% versus July and by 1.9% in comparison to the same month of one year ago, according to the Bureau of Labor Statistics. Economists had projected a rise of 0.3% on the month and 1.8% over the year. At the so-called ‘core’ level, CPI was ahead by 0.2% on the month yet the year-on-year rate of change was steady at 1.7% on the year. The cost of services outside of energy was up by 0.4% on the month, driven by higher prices for shelter and transportation. In comparison to a year earlier, they were up by 2.5%. Core commodity prices on the other hand were again lower, dipping by 0.1% on the month and 0.9% in annualised terms.

A parliamentary committee investigating allegations of misconduct and abuse at Brook House immigration detention centre at Heathrow Airport was told that G4S had misrepresented how much profit it was making from running the site. G4S director Jerry Petherick expressed apologies over the systematic abuse of detainees at Brook House, which had been revealed via secret filming by the BBC’s ‘Panorama’ team, and talked of further inquiries into operations within the company’s Brook House facility.

The bid by 21st Century Fox to buy Sky will be referred to competition regulators in the “coming days”, Culture Secretary Karen Bradley has confirmed. The deal is facing a much fuller examination than initially expected. It will be assessed “on media plurality and genuine commitment to broadcasting standards grounds,” Ms Bradley said. The Competition and Markets Authority will provide its response within 24 weeks of the referral. James Murdoch, chief executive of 21st Century Fox, urged the government to approve the deal. “Remove the noise and get to the facts,” he said, speaking to the Royal Television Society Convention in Cambridge.

Oil prices built on recent gains after forecasts for stronger oil demand by the International Energy Agency.

Gold prices inched higher, attempting to recoup a portion of the losses of the past three sessions

Market Close

Market	Index	Change	% Change
UK 100	7,295.4	-84.3	-1.1%
UK 250	19,523.9	-66.0	-0.3%
GER 30	12,548.5	-5.1	-0.0%
FRA 40	5,230.5	+12.9	+0.3%
U.S. 30	22,173.92	+15.74	+0.1%
U.S. 500	2,496.2	-2.2	-0.1%
OIL (BRENT)	55.80	+0.64	+1.2%
GOLD	1,325.14	+1.93	+0.2%

UK Risers & Fallers

Company	Price	Change	% Change
GVC Holdings	851.75	+52	+6.5%
Next	4994	+577	+13.1%
GKN	337.5	+10.3	+3.1%
Spire Health	252.85	-57.7	-18.6%
Morrison (WM)	232.4	-12.6	-5.1%
Experian	1459	-74	-4.8%

Reported Economic Data

Time/Date	Previous	Forecast	Outcome
12:00pm: U.K. MPC Official Bank Rate Votes	2-0-6	2-0-7	2-0-6
12:00pm: U.K. Monetary Policy Summary	–	–	–
12:00pm: U.K.Official Bank Rate	0.25%	0.25%	0.25%
1:30pm: U.S. CPI m/m	0.1%	0.3%	0.4%
1:30pm: U.S. Core CPI m/m	0.1%	0.2%	0.2%
1:30pm: U.S. Unemployment Claims	298k	303k	284k