- Blue-chip index closes at 7,882
- Economists target summer rate cut
- Interest rates unchanged at 5.25%
16:45pm: FTSE 100 closes higher
London's blue-chip index closed 145 points higher at a six-month high of 7,882.
15:59pm: FTSE 100 to close nearing 1 year high
The FTSE 100 had one of its best days in recent times as it rocketed more than 2% (155 points) to an eleven-month high.
Much of Thursday's stellar performance has come after both the UK and US central banks provided dovish statements, indicating that 3 rate cuts could take place this year, with the first in summer.
Kathleen Brooks at XTB said: "There are two narratives driving the FTSE 100 right now: Glencore is the top performer, and the materials sector is up more than 3.2%, which is benefitting from the commodity price increases.
"The second narrative is the boost to the consumer, and the consumer discretionary sector is the second-best performer, rising by more than 2%. This comes as the BOE takes a step closer to raising interest rates, and after retailer Next said that it expects to see lower rates of inflation later this year."
Glencore shares lifted 3% on Thursday, but its gains have been beaten by mining rivals such as Antofagasta and Fresnillo, both of which are up 4%.
Next also experienced a strong day of trading, with shares ahead by 6.5% after it reported record profits and offered a bullish outlook for the year ahead.
“Lord W. has a spring in his step, speaking for his business to be ‘entering a new era’,” said Shore Capital Markets, referring to chief executive Simon Wolfson.
“The firm is a high-class act with a deserved equity capital market following because there is a more than reasonable chance that it will beat its guidance,” analysts at the capital markets group added.
However, it was 3i Group which led the top risers after it rallied 9% on the back of a third quarter update which revealed its portfolio company Action had recorded strong growth, with sales jumping 28% and profits rising 34%.
Analysts at UBS reckon the stock can reach 2,800p in the next twelve months and have therefore slapped a 'buy' rating on the stock.
FTSE 100 fallers were few and far between, with Hikma, down 4%. and Reckitt, Beazley and BAT, both down 1%, leading the way.
15:40pm: Rate cuts are "on the way" says Andrew Bailey
Andrew Bailey, the BoE governor, believes the UK is "on the way" to having interest rates cut, with indications highlighting inflation will continue to subside as the year goes on.
Speaking after todays meeting with broadcasters, he said: "We’ve had good news. Inflation has come down. It has come down as we have expected but we have still got some way to go, particularly with what I call the more persistent bits of inflation.
"That is particularly the services element, which is about half the total basket of prices. That is still at 6%.
"Now, we don’t need to see it come all the way down to a sustainable level that is consistent with the target but we do need to see further progress."
"But I do want to give this message very strongly. We have had very encouraging, good news, so I think we can say ‘we’re on the way’."
Governor Andrew Bailey explains today’s decision to hold interest rates at 5.25%. pic.twitter.com/64ls7oS1OU
— Bank of England (@bankofengland) March 21, 2024
15:27pm: Apple slips as US accuses it of monopolistic practices
Apple shares have sunk 3%, shedding billions after it was revealed the US has filed a landmark lawsuit against the tech giant.
In the lawsuit the US Department of Justice alleges Apple has built an illegal monopoly with its smartphones, leaving competitors blocked out and unable to innovate.
The DoJ claims Apple uses its power with the iPhone to “engage in a broad, sustained, and illegal course of conduct.”
Analysts predict this will ultimately lead to Apple being fined.
Though the case will likely take years and eventually see Apple defend itself in a trial, Wedbush warned some sort of settlement would have to be sought down the line.
“The DOJ antitrust case is a serious matter that has taken years to build,” the brokerage said.
“They [the Biden Administration] are clearly aggressively heading down this collision path with [chief executive] Tim Cook and [Apple headquarters] Cupertino.”
15:02pm: BAE Systems wins Aukus submarine contract
BAE Systems, the defence company, has been awarded a multi-billion pound contract to build next-gen Aukus submarines for the Australian government.
Said submarines will be nuclear-powered as part of a tri-nation partnership between the UK, Australia and the US.
BAE will work with Australian defence firm ASC Pty to deliver the vessels by the early 2040s, with Rolls-Royce Holdings PLC (LSE:RR.) providing the nuclear-powered engines.
Both the Royal Navy and the Royal Australian Navy will use the subs and expect them to be the "largest, most powerful and advanced" the UK has ever deployed.
Charles Woodburn, chief executive at BAE Systems said: "We’re already making good progress on the design and development of the next generation submarine in the UK where we have more than 1,000 people working on the SSN-AUKUS programme and major infrastructure investment underway.
"This latest step will ensure an integral connection between the UK design and the build strategy development in Australia as we work together to deliver next-generation military capability as well as considerable social and economic value to all three nations."
14:37pm: NatWest and JP Morgan miss gender equality targets
NatWest, the Cooperative Bank and JP Morgan were three of 32 City firms that have failed to reach their self-imposed targets for bringing women into senior roles.
The Treasury's Women in Finance Charter released its annual report which revealed 32 companies missed their targets, while an additional 27 came in close, either missing by five percentage points or by five appointments.
Some 75% of firms either upped or kept the same amount of women in senior management. More than half the firms targeted having at least 40% of their senior positions taken up by females.
Female representation across the City rose to 35% from 34% in 2022 and up against the first recorded figure of 27% in 2016.
Amanada Blanc, the chief executive at Aviva, said: "There is a clear sense of progress and determination to achieve gender diversity in financial services. With over a third of signatories meeting their targets and a steady uptick in female representation, the level of ambition is growing.
"Whilst this progress is commendable, we need to move quicker: at the current pace, we won’t achieve gender parity until 2038. Let’s use the report’s insights as a catalyst for action.”
13:55pm: Bank of England "overly cautious" in cutting rates
Economists believe the Bank of England may have been "overly cautious" in keeping rates unchanged despite inflation beginning to slow.
Suren Thiru, economics director at ICAEW, said: "While interest rates staying on hold again was expected, the more dovish vote split and meeting minutes suggest that rate setters are opening the door for rate cuts later this year.
"Though this interest rate hiking cycle is firmly in the rear-view mirror, the long delay between tightening policy and its impact on the wider economy means that the heavy toll of 14 rate rises has yet to fully crystalise.
"The Bank of England remains overly cautious on the prospect of rate cuts given the startling inflation slowdown and an economy in recession, increasing the risk they prolong our economic struggles by keeping policy too tight for too long."
Kathleen Brooks at XTB has also noted the significance that both Catherine Mann and Jonathan Haskel, the BoE's two most hawkish policymakers, didn't vote for a hike.
She said: "This suggests that even the hawks at the BOE can appreciate the progress made on inflation, and feel happy with the current level of rates.
"This opens the door to rate cuts in the coming months, although the BOE was unwilling to disclose the timing of a potential cut."
13:35pm: Wall Street opens higher
Wall Street opened higher on Thursday, with US stocks benefiting from the string of dovish statements coming out of the Fed and European central banks.
The S&P 500 was up 25 points to 5,250, while the Nasdaq reached 16,510, having lifted 132 points.
The Dow Jones began today's trading session around 179 points higher at 39,691.
It means all three indexes have continued to build on all-time highs, having closed on Wednesday at record peaks.
Amazon opened up 1% higher, but shareholders will be smiling after it benefited from the 72% surge of debuting Astera Labs.
In 2022, the e-commerce giant agreed to a deal with Astera - and as part of that deal it secured warrants to purchase some 1.5 million shares at US$20.34 each.
One year later, this deal was rejigged further to give Amazon the right to buy another 830,000 shares. Amazon currently holds a stake worth US$144 million.
Apple slipped by close to 1% after it was revealed it is reportedly set to be hit with an antitrust lawsuit by the US Department of Justice as early as Thursday, which analysts say will ultimately result in a fine.
13:18pm: Rate cuts as early as May, Neuberger Berman reckons
UK interest rates could be cut as soon as the Bank of England's next meeting in May, says Robert Dishner at Neuberger Berman, the investment manager.
He said: "[Today] is the first time since September 2021 that no member voted for a hike. The Bank did not change the language “monetary policy will need to remain restrictive for sufficiently long,” but we view the vote as a bigger signal towards cuts in the May or June meeting.
Berman argued that the central bank is now indicating that the freeze in fuel duty, which was extended until March 2025 in this month's Spring Budget, will mean second-quarter inflation will be marginally lower than forecasts of 2%.
The senior portfolio manager added:"It noted “some upside risks remained around both the wage and CPI inflation projections,” but we think this seems strange in the context of lowering the 2Q24 inflation forecast.
"On net, it is a modestly dovish result which opens the doors to rate cuts."
12:54pm: Economists and markets react to BoE decision
Money markets have jumped and are now pricing in three interest rate cuts in 2024 after no members of the MPC voted to raise rates - the first instance since September 2021.
Rob Clarry at Evelyn Partners said: "Today’s meeting doesn’t seem to have materially changed the calculus for money market traders, although the probability of a June rate cut has increased to 70% from 50% at the start of this week.
"The market took the decision and communications as dovish, with sterling weaker against the US dollar and gilt yields falling across the curve."
Economists believe the first cut will come in summer, with those confident targeting June.
Despite the optimism, analysts at BlackRock believe policymakers will remain "extremely cautious" before voting in favour of a cut.
Vivek Paul, UK chief investment strategist at BlackRock Investment Institute said: "Where inflation ultimately settles depends on services inflation. At 6.1%, that’s too high for the Bank to cut rates now, even if headline CPI is down to 3.4%.
"Wages will be a key driver of services inflation - but the Bank has itself flagged the difficulty of assessing labour market conditions without more reliable data, so we think it will be extremely cautious before declaring victory in its inflation fight.
"We do think it will start to cut later this year, but expect policy to remain tight in 2024."
12:28pm: US stocks to build on Wednesday's record session
Wall Street is set to open higher on Thursday after the three major indexes closed out Wednesday at fresh records, boosted by Dovish comments from the Fed.
The Dow Jones is up around 108 points at 39,942 in premarket trading, while the S&P 500 is positioned to open around 21 points higher at 5,288.
The Nasdaq is set to begin trading 168 points higher at 18,482.
Markets in the US and Europe have continued to experience lifts as central banks begin to indicate plans of interest rate cuts later this year.
Micron Technology is up around 18% in premarket trading after it reported better-than-expected earnings which were helped by the AI boom.
Five Below (NASDAQ:FIVE), the discount retailer is set to open 12% lower after it missed fourth-quarter earnings guidance and had its share price target downgraded by analysts at Citi.
12:11pm: FTSE 100 jumps as Bank of England "moves in right direction"
The Bank of England's Monetary Policy Committee (MPC) voted eight to one in favour of maintaining rates at 5.25%, with one member preferring to reduce rates to 5%.
London's FTSE 100 is soaring 117 points higher following the decision.
Governor Andrew Bailey said: "In recent weeks we’ve seen further encouraging signs that inflation is coming down.
"We’ve held rates again today at 5.25% because we need to be sure that inflation will fall back to our 2pc target and stay there.
"We’re not yet at the point where we can cut interest rates, but things are moving in the right direction."
Dovish pause from the #BoE: moving in right direction to cut rates, not there yet.
— Chris Beauchamp (@ChrisB_IG) March 21, 2024
BOE: rates left unchanged. No members voted for a hike, this is the dovish pivot the market has been waiting for. No one voting for a hike opens the door to rate cuts in June.
— kathleen brooks (@KATHLEENBROOKS) March 21, 2024
Targets for inflation to reduce to 2% have been maintained and the MPC appears confident it can achieve this, although it warned inflation may depart from said target "as a result of shocks and disturbances".
"Monetary policy will need to remain restrictive for sufficiently long to return inflation to the 2% target sustainably in the medium term in line with the MPC’s remit," the Bank of England said in its statement.
"The Committee will keep under review for how long Bank Rate should be maintained at its current level."
12:00pm: Interest rates kept at 5.25%
UK interest rates have been kept unchanged at 5.25% by the Bank of England, marking the fifth consecutive decision to maintain rates.
11:52am: FTSE 100 well positioned ahead of rate decisionn
The FTSE 100 is continuing to hold its stellar gains as it trades 94 points higher ahead of the Bank of England's interest rate decision.
Thursday's strong performance came after a record day of trading in the US on Wednesday, driven by the Federal Reserve's optimistic announcement that three rate cuts will come in 2024.
UK markets and investors will be hoping for an equally dovish statement from Britain's central bank at midday.
Leading the index's top risers is Next, up 6%, after it posted record profits, a strong outlook and promised more shareholder returns.
Fresnillo and Anglo American have also lifted 6% and 5% respectively as a whole host of the FTSE 100 miners experience a strong day.
3I Group also lifted 5.5% after its third quarter update revealed its portfolio company Action had recorded strong growth, with sales jumping 28% and profits rising 34%.
Top fallers included Hikma Pharmaceuticals, down 6%, indicating a reversal of its gains from yesterday.
Other fallers include Beazley, British American Tobacco and Reckitt Benckiser, all of which are down around 2%.
11:38am: Switzerland and Turkey surprise with interest rate decision
The Bank of England is set to make its decision on interest rates at midday, but both the market and analysts aren't expecting it be a very exciting update.
However, in other parts of Europe, policymakers have been a little bit busier.
Turkey's central bank has been battling inflation heavily recently and has decided to ramp up rates again.
Interest rates were lifted five percentage points from 45% to 50%, surprising the market, which had expected the figure to remain the same.
Meanwhile, in Switzerland, its central bank also surprised economists after it cut interest rates by 25 basis points to 1.5%.
It marked the first major central bank to scrape back rates and move away from a tight monetary policy aimed at reducing inflation.
Norway's central bank Norges Bank kept its rate on hold.
11:16am: Fed "itching to cut" interest rates
Economists at Barclays believe the Federal Reserve is "itching to cut" interest rates after March's meeting saw the committee maintain rates but target three cuts later in the year.
Both Fed chair Jerome Powell and the Federal Open Market Committee (FOMC) reiterated its guidance from the start of the year that they need more confidence that inflationary pressures are beginning to subside.
The FOMC said it "does not expect ... to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent".
While January and February inflation prints were slightly hotter-than-expected, Powell kept a dovish outlook, noting that as monetary policy remains restrictive it is set to cause inflation to slow in the next few months.
10:50am: Barclays to axe hundreds of jobs in its investment bank division
Barclays is prepping to cut hundreds of jobs from its investment banking arm as it starts on its recently announced turnaround plan to cut costs and grow profits.
Workers affected will also include those in the global markets and research divisions, as part of an annual review process, and will take place in the coming months.
"We regularly review our talent pool to ensure that we can invest in high-performing talent, execute on our strategy, and deliver for our clients," Barclays said in a statement.
In February, Barclays launched new cost-cutting measures to enact £2 billion in annual savings, with 17,000 jobs expected to go as a result.
Analysts at research house Third Bridge estimated a 20% reduction in headcount would be required to achieve the figure touted. The high street lender currently employs around 85,000 people.
10:35am: Next boss bucks trend with rosy outlook
Next results impressed the market, with shares bouncing 5% to an all-time high, after it reported record profits and promised shareholder returns through a share buyback.
However, analysts have been more impressed by boss Simon Wolfson as he offered a slight departure from his normal tactics.
“A key tenet of Lord Wolfson’s tenure at the helm of Next has been a bias towards under-promising and over-delivering – a discipline which has served the company well on the stock market over the years," said analysts at AJ Bell.
“It is striking therefore to see Wolfson be so openly positive about the prospects for the year ahead."
Next expects full-price sales to rise by 2.5% in the 2025 financial year while its products experience a slight deflation, meaning prices will not go up.
Guidance for projected group sales growth maintained at 6% and group profit guidance set at £960 million, up 4.6%. Forecasted post-tax EPS for the upcoming year is 606.3p, up 4.8%.
9:53am: Flash PMI figures signal recession exit
The UK private sector grew for the fifth consecutive month in March, highlighting how Britain is nearing its exit from a short-lived recession.
Flash PMI figures came in at 52.9 in March, slipping slightly from February's 53, but importantly remaining above the 50-point mark.
PMI figures which come in below 50 highlight a contraction in the market.
Flash #PMI signals a solid end to the first quarter for the UK economy, indicates 0.25% Q1 #GDP rise. But price pressures have remained elevated, especially in the service sector., which will worry the #BoE. More at https://t.co/8H80uDeosW pic.twitter.com/ytB3dPqe1R
— Chris Williamson (@WilliamsonChris) March 21, 2024
Service sector growth outpaced the manufacturing sector once again in March, however, it slowed from 53.8 to 53.4, coming in lower than consensus.
Manufacturing output picked up slightly from 47.5 to 49.9, beating the market's consensus of 47.8.
Chris Williamson, chief business economist at S&P Global said: "Further signs of the UK economy having pulled out of last year’s brief recession are provided by the provisional PMI data for March.
"A further robust expansion of business activity ended the economy’s best quarter since the second quarter of last year.
"The survey data are indicative of first quarter GDP rising 0.25pc to thereby signal a reassuringly solid rebound from the technical recession seen in the second half of 2023."
9:40am: BoE meeting to be "uneventful" as analysts target August cut
Analysts are predicting that the Bank of England's interest rate decision this afternoon will be "relatively uneventful."
While inflation in February came in lower than expected, economists are confident the Monetary Policy Committee (MPC) will keep interest rates unchanged at 5.25%, echoing a similar decision by the US Federal Reserve on Wednesday.
UBS analysts said: "We expect the MPC to reiterate that it needs to grow more confident on the sustainable return of inflation to the target, implying the need to see more progress in inflation and wage data.
"We also expect the MPC to make no substantial changes to its forward guidance."
The Swiss bank pointed out how in February's decision both Haskel and Mann, two of the committee's hawkish members, voted to raise rates.
"Wednesday's inflation print indicates a risk of at least one of them switching to a vote for no change," UBS added.
It expects the first rate cut to come in August 2024, with 75 basis points of cuts to come in 2024, via three separate 25-basis point reductions.
UBS concluded: "For 2025, we continue to expect 175bp of cuts, bringing Bank Rate to 2.75% by year-end. The markets currently price 4bp for May, 12.5bp for June and 27.5bp for August."
9:15am: FTSE 100 holding onto early gains
The FTSE 100 is attempting to hold onto its impressive gains this morning, up 71 points and maintaining its position at a 2024 high.
Leading the charge are gains from Ocado (+6%), Next (+5%) and a string of mining companies like Fresnillo and Anglo American.
8.55am: The morning so far
The FTSE 100 got off to a roaring start by adding around 95% points to hit a year-to-date high of 7,829.
This was helped by a record-setting session in the US after the Federal Reserve signalled that it continues to see three rate cuts occurring in 2024.
It’s over to the Bank of England today, with markets widely expecting interest rates to be held at 5.25%.
However, yesterday’s softer-than-expected inflation print may preempt a more dovish outlook from policymakers when they convene this afternoon.
No one is expecting a rate cut, but eyes will be on forward guidance after yesterday’s soft inflation print.
Next plc delivered a great set of results this morning, with profits hitting a record £918 million in 2023, up 5% from the previous year, with earnings per share (EPS) slightly rising by 0.3% to 578.8p.
Shares rallied more than 5% in the aftermath.
Direct Line shares were also up after the UK motor insurer Direct Line recovered to a pre-tax profit of £277 million last year, from a loss of £302 million in 2022.
That said, today’s results still managed to undershoot consensus forecasts marginally. Shares were last seen a percentage point higher.
Nationwide formally offered 220p per share in its acquisition of Virgin Money, consisting of a 218p cash consideration and a 2p dividend.
The offer values Virgin Money at approximately £2.9 billion, representing a 38% premium over the closing price on March 6, when Nationwide first announced the takeover.
8.48am: Big Box and UKCM agree on merger terms
The Boards of Tritax Big Box REIT PLC (LSE:BBOX) and UK Commercial Property REIT (LSE:UKCM) Limited have agreed on a recommended all-share merger of the two companies.
The NAV-for-NAV merger creates the fourth-largest REIT in the UK with an approximately £3.9 billion market capitalisation.
Following completion of the Combination, UKCM Shareholders will own approximately 23.3 per cent. and existing BBOX Shareholders will own approximately 76.7 per cent. of the issued ordinary share capital of the Combined Group.
Tritax’s announcement stated: “The Boards of BBOX and UKCM believe that the Combination has a compelling strategic and financial rationale, building on BBOX's existing strategy and proven track record of delivering attractive and sustainable returns for shareholders.”
8.41am: Bitcoin’s bullish engulfing
Bitcoin experienced what is known as a ‘bullish engulfing’ pattern on the chart yesterday, with a green candlestick eclipsing Tuesday’s red candlestick.
In other words, the world’s largest cryptocurrency recovered all of Tuesday’s losses against the US dollar by surging more than 9.5% by the end of the day.
Source: Binance
This was aided by record highs in the equities markets after the US Federal Reserve signalled that it continues to see three rate cuts occurring in 2024.
At the time of writing, the BTC/USD pair was swapping for $67,340, having dipped a little in early trades.
8.32am: Direct Line shares up on profit recovery
UK motor insurer Direct Line recovered to a pre-tax profit of £277 million last year, from a loss of £302 million in 2022.
That said, today’s results still managed to undershoot consensus forecasts marginally.
The bottom line was aided by increased insurance prices, which improved underwriting margins. The sale of its brokered commercial business allowed for the reinstatement of a dividend of 4p per share.
Chief executive Adam Winslow announced plans for significant cost reductions and improved claims management, aiming for £100 million in annual savings by next year and setting a rigorous underwriting profit target for 2026.
Markets responded positively to all of this, sending shares in the FTSE 250 company over 2% higher.
8.21am: Next's acquisitional strategy has 'broadened wider sales'
Here's what John Moore, senior investment manager at RBC Brewin Dolphin, said of Next's results: “Next continues to deliver against a tough retail backdrop, with growing momentum on sales and cashflow management.
"The group’s strong balance sheet means Next is a beneficiary as other brands struggle in the current environment, and we have seen that play out in recent years with its acquisition of a range of well-known peers.
"These deals have often proven earnings accretive and have broadened wider sales for Next – the potential acquisition of The Body Shop very much falls under this category and would offer a different proposition to add to its portfolio of businesses.
"Next’s management team appears to be optimistic about the year ahead and, with a clear strategy based on three growth pillars, it would take a brave person to bet against them.”
8.10am: Next share rally on bumper results
FTSE 100 clothing retailer Next plc's shares surged 4% in opening exchanges following an impressive set of earnings.
Profits hit a record £918 million in 2023, up 5% from the previous year, with earnings per share (EPS) slightly rising by 0.3% to 578.8p. Total sales for the clothing retailer increased by 5.9% to £5.8 billion.
It was an expectedly stellar set of results for Next, following a string of sales and profit upgrades scattered throughout the past 12 months.
"In the context of the wider economic environment, the year to January 2024 was a very good year for NEXT and the business materially outperformed our initial expectations," said chief executive Lord Wolfson.
Next expects another good year ahead, with projected Group sales growth of 6% and group profit guidance set at £960 million, up +4.6%. Forecasted post-tax EPS for the upcoming year is 606.3p, up +4.8%.
7.37am: Nationwide formally prices Virgin Money takoever
Nationwide is offering 220p per share in its acquisition of Virgin Money, consisting of a 218p cash consideration and a 2p dividend.
The offer values Virgin Money at approximately £2.9 billion, representing a 38% premium over the closing price on March 6, when Nationwide first announced the takeover.
Nationwide intends to rebrand Virgin Money over time, with arrangements made regarding the use of the ‘Virgin Money’ brand and discussions on a potential partnership involving the ‘Virgin Red’ loyalty programme.
Debbie Crosbie, chief executive of Nationwide Building Society, said: "This acquisition strengthens Nationwide and means we can offer more value and broader services for our current and future members."
David Bennett, chairman of Virgin Money, added: "We're pleased to recommend the terms agreed with Nationwide, which deliver an attractive premium for our shareholders."
7.21am: What to expect from the BoE
The Monetary Policy Committee is preparing to announce its latest policy decision on the back of easing inflation and wage growth.
This has given the market confidence that the first rate cut will be along in a few months.
It’s still too early for the bank to drop rates today, while ING’s developed markets economist James Smith even suggested that one or two hawks could even vote for a rate hike.
“Financial markets have scaled back rate cut expectations since the turn of the year,” said Smith.
“Since February’s meeting, we’ve had data showing both wage growth and services CPI falling, largely as the Bank had forecast back in February, and importantly we’ve seen further signs that firms’ price and wage expectations for coming months are cooling.
“Whether or not that’s enough to convince (hawkish MPC members Jonathan Haskel and Catherine Mann) to drop their rate hike votes isn’t clear. We wouldn’t be totally surprised if at least one of those committee members still votes for a rate hike this month.”
AJ Bell’s head of investment analysis Laith Khalaf had a similar sentiment.
He said: “The Bank of England will be minded to keep interest rates on hold when it meets on Thursday and there’s been no significant economic data which would prompt them to take action at this juncture.
“If anything the National Insurance cut announced in the Budget will probably raise some inflationary concerns.”
7.10am: FTSE on the front foot
The FTSE 100 is tipped to surge 60 points higher to 7,796 when markets open today after a flat trading session on Wednesday.
Stocks are responding to a record-breaking session in the US after the Federal Reserve signalled that it continues to see three rate cuts occurring in 2024.
It’s over to the Bank of England today, with markets widely expecting interest rates to be held at 5.25%.
However, yesterday’s softer-than-expected inflation print may preempt a more dovish outlook from policymakers when they convene this afternoon.
On the company news front, Next plc will shortly deliver its annual earnings, as will Direct Line, Dowlais, Ithaca Energy and the Aquis exchange.