Today's Closing Update
U.S. shares were little changed in early trade today, as traders waited to see details of a much anticipated tax plan. US President Donald Trump is also expected to formally announce Federal Reserve governor Jerome Powell as his pick to lead the US central bank.
European stocks held just off two-year highs thanks to forecast-beating results from lenders Credit Suisse, ING and Danske Bank.
For the first time in more than 10 years, the Bank of England has raised interest rates. The official bank rate has been lifted from 0.25% to 0.5%, the first increase since July 2007. The move reverses the cut in August of last year – made in the wake of the vote to leave the European Union. Almost four million households face higher mortgage interest payments after the rise, but it should give savers a modest lift in their returns. As well as many of the country’s 45 million savers, anyone considering buying an annuity for their pension will also see better deals. The main losers will be households with a variable rate mortgage.
The pound fell after the Bank of England increased interest rates but indicated that any future rises would be “very gradual”. As had been widely expected, the Bank raised rates from 0.25% to 0.5%, with seven of the nine Monetary Policy Committee members backing the increase. But it repeated previous guidance that any future rises would be “at a gradual pace and to a limited extent”. Sterling fell more than a cent against the dollar and more than a cent against the euro.
Gavin Williamson has been appointed Defence Secretary after Michael Fallon resigned from the job amid Westminster sleaze allegations, Downing Street has announced. Fallon quit after admitting his behaviour had “fallen below the high standards required” in the role and acknowledging that what might have been acceptable in the past was no longer appropriate. Williamson, who was the government’s chief whip before this appointment, will take the job having never held ministerial office.
David Davis has said the government intends to be “as open as we can be”when making Brexit economic impact studies available to MPs. The Brexit Secretary said he was already talking to Hilary Benn,chairman of the Exiting the EU Select Committee, about handling the release of the studies showing the potential impact of leaving the union on 58 economic sectors. The government has repeatedly refused to release the studies in response to freedom of information requests and parliamentary questions from MPs, claiming doing so would harm Britain’s negotiating position with Brussels. But on Wednesday, Labour used an arcane parliamentary procedure to pass a motion to have the studies provided to the select committee so MPs can analyse how different negotiating outcomes could affect the economy.
HSBC should be investigated for “possible criminal complicity” in connection with corruption allegations in South Africa, a UK peer has said. Lord Peter Hain told Parliament he had asked the Treasury to refer an unnamed UK bank for investigation into possible involvement in money laundering. In the letter, seen by the BBC, he named HSBC and said it ignored a warning about large transfers of cash. He cited evidence of transactions out of South Africa involving HSBC.
KAZ Minerals said today that the government of Kyrgyzstan has suspended operations at the Bozymchak copper and gold mine for three months. KAZ Minerals said it believes that the mine is in compliance with its obligations and is currently in discussions with relevant authorities to recommence operations as soon as possible.
Oil Prices steadied near two-year highs today as supply cuts by OPEC and other major exporters tightened the market and drained inventories.
Gold inched higher today, helped by a weaker dollar and lower U.S. bond yields, as investors waited for the nomination of a new U.S. Federal Reserve chair and the unveiling of U.S. tax reform legislation later in the day.
Market Close
UK 100 |
7,555.3 |
+67.4 |
+0.9% |
UK 250 |
20,385.5 |
+57.2 |
+0.3% |
GER 30 |
13,443.3 |
-22.2 |
-0.2% |
FRA 40 |
5,510.9 |
-3.4 |
-0.1% |
U.S. 30 |
23,470.82 |
+35.81 |
+0.2% |
U.S. 500 |
2576.8 |
-2.5 |
-0.1% |
OIL (BRENT) |
60.42 |
-0.07 |
-0.1% |
GOLD |
1,275.50 |
+0.84 |
+0.1% |
UK Risers & Fallers
Howden Joinery |
454.3 |
+41.7 |
+10.1% |
Intu Properties |
221.25 |
+8.1 |
+3.8% |
Smurfit Kappa |
2381 |
+73 |
+3.1% |
Electra Private Equity |
966.25 |
-898.5 |
-48.1% |
Randgold Resources |
6930 |
-540 |
-7.2% |
Convatec |
186.2 |
-5.6 |
-2.9% |
Reported Economic Data
10:30am: U.K. Construction PMI |
48.1 |
48.3 |
50.8 |
1:00pm: U.K. BOE Inflation Report |
– |
– |
– |
1:00pm: U.K. Monetary Policy Summary |
– |
– |
– |
1:00pm: U.K. Official Bank Rate |
0.25% |
0.50% |
0.50% |
1:00pm: MPC Official Bank Rate Votes |
6-0-3 |
2-0-7 |
7-0-2 |
1:30pm: U.S. Unemployment Claims |
233k |
235k |
229k |
http://www.reuters.com/article/us-global-oil/oil-prices-steady-near-two-year-highs-as-market-tightens-idUSKBN1D2036
https://uk.reuters.com/article/global-precious/precious-gold-inches-up-as-investors-await-trumps-choice-of-fed-chair-idUKL8N1N84PI
http://www.bbc.co.uk/news/business-41849086
http://uk.reuters.com/article/us-europe-stocks/european-shares-near-two-year-high-credit-suisse-leads-bank-gains-idUKKBN1D20W6
http://www.bbc.co.uk/news/business-41846330
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1509634690596898700.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1509627587226704900.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1509625210446593800.html
http://www.bbc.co.uk/news/business-41843725
http://www.bbc.co.uk/news/business-41835937