- FTSE 100 closes 89 points higher
- Miners provide support
- Airline share flying
4:45pm: FTSE soars on BoE decision
The UK's blue chip index saw a big jump at the close as the Bank of England signaled cautious optimism amid Omicron fears.
The FTSE 100 closed at 7,260 points, a 1.25% increase on the day.
"Markets have taken today’s BoE rate rise in their stride, with the pound gaining ground as a result," IG's Josh Mahoney wrote. "The decision to raise rates in the face of an ongoing Omicron surge does serve to highlight the feeling that this wave could be much shorter than previous occasions. Banks are on the front foot today, whereas Boohoo’s profit warning has hindered sentiment for the wider sector."
3.45pm: Leading shares close to day's high
With the Bank of England raising rates and the US Federal Reserve and European Central Bank easing their support for the economy, investors have a little more clarity about where we might go from here.
And that has helped support markets as we head towards the Christmas period.
So the FTSE 100 is up 96.43 points or 1.34% at 7267.18, close to its high for the day.
Michael Hewson, chief market analyst at CMC Markets UK, said: "It’s been a strong day of gains for European markets today with the moves higher being led by financials, as well as basic resource stocks, after the Federal Reserve soothed market concerns that they had taken their eyes off the ball when it comes to inflation risks.
"The surprise decision by the Bank of England to raise interest rates has built on this narrative, and while the timing is curious, the decision has helped financials to post decent gains.
"A weaker US dollar has also helped boost metals prices, which in turn is helping to lift the basic resource sector..
"Airlines are also seeing a modest tick up along with the rest of the hospitality and leisure sector after it was reported that Chancellor of the Exchequer Rishi Sunak would be holding a virtual meeting with representatives of the industry to discuss possible support measures in light of the new Omicron recommendations."
Among the financials, Lloyds Banking Group PLC (LSE:LLOY) is up 3.81% while Barclays PLC (LSE:BARC) is 3.25% bette.
Rio Tinto PLC (LSE:RIO) has risen 3.05% and Antofagasta PLC (LSE:ANTO) has added 2.87%.
British Airways owner International Consolidated Airlines Group (LSE:IAG) is up 0.99% and easyJet plc (LSE:EZJ) has jumped 2.53%.
3.23pm: US PMIs show strong growth
The US economy has grown strongly in December, if not by as much as expected, according to the latest purchasing managers' data.
The IHS Markit initial reading for the composite PMI came in at 56.9, a little lower than the forecast 57.2.
Within that services was at 57.5 compared to expectations of 58.7, while manufacturing was at 57.8, lower than the anticipated 58.5.
Chris Williamson, chief business cconomist at IHS Markit, said: “The survey data paint a picture of an economy showing encouraging resilience to rising virus infection rates and worries over the Omicron variant.
"Business growth slipped only slightly during the month and held up especially well in the vulnerable service sector. Manufacturing output growth even picked up slightly amid a marked easing in the number of supply chain delays, which also helped to take pressure off raw material prices.
"Barring the initial price slide seen at the start of the pandemic, December saw the steepest fall in factory input price inflation for nearly a decade.
“The worry is that rising wage growth, greater transport costs and higher energy prices have pushed service sector cost inflation to a new high, and that any renewed disruption to global supply lines resulting from the Omicron wave could lead to renewed upward pressure on goods prices.”
3.06pm: Dow makes triple digit gain but other indices slip
US shares made a mixed start as traders mulled over the Federal Reserve announcement on accelerating tapering and as the UK central bank lifted interest rates.
The Dow Jones Industrial Average is up 105 points or 0.29% at 36,033, but the broader based S&P 500 has slipped 2.5 points, while the tech-heavy Nasdaq Composite Index is down 110 points or 0.7%.
Following the Federal Reserve news, traders also firmed their own expectations for interest rate increases in the US. The Fed had said it potential sees three hikes in 2022.
In company news, US big banks did well on the back of the rate hike prospect, with shares in JPMorgan Chase, Citigroup and Bank of America (NYSE:BAC) (Bank of America (NYSE:BAC)) all heading north.
In the UK, the FTSE 100 is up 74.42 points or 1.04% at 7245.17.
2.22pm: European Central Bank updates on asset purchase programmes
Over in Europe, and if the Bank of England move caught some on the hop, the European Central Bank has kept in line with market expectations.
Its Pandemic Emergency Purchase Programme is still set to end in March while it will cut its Asset Purchase programme from €40bn in the second quarter to €30bn, with the more traditional quantitative easing programme coming in at €20bn from the fourth quarter.
2.14pm: US weekly jobs claims rise
Perhaps a little irrelevant in the wake of the big Federal Reserve decision to increase tapering and prepare for interest rate rises, but the weekly US jobless claims have come in higher than expected.
Some 206,000 Americans claimed for unemployment benefits for the first time last week, compared to an expected figure of 200,000.
The previous week's figure of 184,000 has been revised up to 188,000.
Following the news, US markets have lost a little of their anticipated gains.
The Dow Jones Industrial Average is now expected to climb 0.5%, the S&P 500 0.48% and the Nasdaq Composite 0.29%.
12.52pm: Pound climbs against dollar and euro
Sterling has jumped after the rate rise - the first for almost a year and nine months - and with the prospect of more to come.
The pound is up 0.72% against the dollar at US$1.3358 and 0.46% better agains the euro at €1.18.
Dean Turner, economist at UBS Global Wealth Management, said: "It was always a case of when, not if the Bank of England would hike. By moving today, the Bank avoids the need to move more aggressively next year. We expect them to maintain rates for a few months, with the next move coming in May. A further rise should follow, taking interest rates back to their pre-pandemic levels by the end of next year.
“The pound bounced on the back of today’s decision. With more rises coming next year, we expect the pound to be well supported, especially against the euro.”
12.44pm: More rate rises to come, say analysts
More on the rate rise, and the Bank's forecast that inflation will hit 6% in April - three times its 2% target.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: ‘’The Bank of England has thrown out an anchor to try stop the fast currents of inflation taking the economy into more dangerous waters. The rate rise to 0.25% which increases the cost of borrowing, is aimed at dampening down demand and does risk sending already weak sectors further off course. But policy makers clearly see rampant inflation as an even more treacherous tide to deal with, with the CPI reading this week showing prices are already accelerating at levels not predicted until next Spring. Instead of battening down the hatches and waiting for the latest COVID-19 storm to subside, they are taking action now to prevent an even sharper spiralling upwards of prices...
"All eyes are now on when the next rate rise could come in the UK. The chill winds of the new variant might not only cause a fresh contraction in output, but could also whip up prices even higher, by making supply chain snarl ups worse, particularly with a shift away from spending on services, to buying goods instead, with many people staying put in their homes once more. Full UK custom regulations will also be required on goods coming in from the EU in January, which means more red tape and checks at ports and the potential for fresh bottlenecks in the supply chain and shortages have the potential to push up prices even further.
"The Bank hadn’t expected inflation to peak at 5% until the Spring, but it’s already nudged above that rate and is expected to head towards 6% by next April and the Bank won’t want to be seen as behind the monetary policy curve. So the indications are that fresh hikes will arrive in relatively quick succession, but only when the latest COVID-19 storm starts to subside.’’
Alpesh Paleja, lead economist at the CBI, said: “The decision to raise interest rates signals that the MPC want to get off on the front foot in tackling rising inflation. We’re likely to see at least a couple more rate rises, as flagged in previous commentary from the Committee.
“However, the emergence of the Omicron variant has raised uncertainty over the near-term outlook, so the MPC will likely move more cautiously. We could even see a return to the Committee’s holding pattern on monetary policy, if there are strong signs of either the virus or Plan B restrictions dampening activity and price pressures
“But in either scenario, it’s important to remember the overall stance of monetary policy will remain very accommodative going forward.”
12.38pm: US markets poised to add to gains
Over the pond, US stocks are expected to open in the green as investors embraced the Federal Reserve’s decision to tighten monetary policy in order to rein in inflation at a 39-year high.
Futures for the Dow Jones Industrial Average rose 0.61% in Thursday pre-market trading, while the broader S&P 500 index added 0.69% and those for the tech-heavy Nasdaq 100 gained 0.71%.
The Dow and the S&P 500 turned positive towards the close on Wednesday after the Fed announced it was accelerating the withdrawal of its crisis-era stimulus programs and ramped up the rate of tapering of its asset purchasing program to $30 billion per month.
The Dow Jones gained 1.08% to close at 35,927 while the S&P 500 added 1.63% to finish at 4,710 and the Nasdaq surged 2.15% to 15,566 points.
12.31pm: Lloyds leads the way for banks after rate move
Financial shares are surging after the interest rate rise.
With their business likely to be boosted by the move, Lloyds Banking Group PLC (LSE:LLOY) has been lifted by 6.35%, Barclays PLC (LSE:BARC) is 4.51% better, NatWest Group PLC (LSE:NWG) is up 3.82% and Standard Chartered PLC (LSE:STAN) has climbed 3.48%.
And that has helped support the FTSE 100, which is up 71.07 points or 0.99% at 7241.82.
12.20pm: "Bank couldn't ignore inflation hitting ten year high"
Dan Lane, senior analyst at Freetrade said: "The market wasn’t fully expecting it but then again the Bank of England couldn't ignore inflation climbing to a ten year high.
"The BoE has decided Omicron is unlikely to derail the recovery and heaving a rate rise into motion takes priority.
"The IMF will be happy the BoE has taken their hint on board. On Tuesday the Fund pretty much told the Bank to get a move on with a rate rise.
"Today’s rise might just allow [Bank governor Andrew] Bailey to shake that ‘unreliable boyfriend’ label too.
"There’s still a considerable risk that the new COVID-19 variant does become a significant hurdle in the UK’s economic recovery though. Whether today’s decision was the right one or not will only become clear down the line but we shouldn’t forget the option to kick it into 2022 was very much on the table.
"Whether rate setters felt the pressure to get going or not, it signals a much punchier trajectory for rates as we enter the new year."
12.14pm: Bank cuts fourth quarter GDP forecast and says inflation will peak at 6% in April
It was not a unanimous vote to raise rates but near enough, with only one dissenter out of the nine members of the Bank's monetary policy committee.
There was a unanimous vote to keep the asset purchase programme at £875bn a month.
Explaining the decisions, the Bank said: "Since the November MPC meeting, the Omicron Covid variant has emerged. It appears to be spreading rapidly within the United Kingdom and around the world...
"The level of global GDP in 2021 Q4 is likely to be broadly in line with the November Report projection, but consumer price inflation in advanced economies has risen by more than expected. The Omicron variant poses downside risks to activity in early 2022, although the balance of its effects on demand and supply, and hence on medium-term global inflationary pressures, is unclear. Global cost pressures have remained strong...
"At its November meeting, the Committee judged that, provided the incoming data, particularly on the labour market, were broadly in line with the central projections in the November Monetary Policy Report, it would be necessary over coming months to increase Bank Rate in order to return CPI inflation sustainably to the 2% target. Recent economic developments suggest that these conditions have been met. The labour market is tight and has continued to tighten, and there are some signs of greater persistence in domestic cost and price pressures. Although the Omicron variant is likely to weigh on near-term activity, its impact on medium-term inflationary pressures is unclear at this stage.
"The Committee judges that an increase in Bank Rate of 0.15 percentage points is warranted at this meeting."
The Bank has cut its expectations for fourth quarter GDP by around ½% since the November Report, leaving GDP around 1½% below its pre-Covid level.
On inflation it said: "Twelve-month CPI inflation rose from 3.1% in September to 5.1% in November, triggering the exchange of open letters between the Governor and the Chancellor of the Excheque.. Relative to the November Report projection, there has been significant upside news in core goods and, to a lesser extent, services price inflation
"Bank staff expect inflation to remain around 5% through the majority of the winter period, and to peak at around 6% in April 2022, with that further increase accounted for predominantly by the lagged impact on utility bills of developments in wholesale gas prices. Indicators of cost and price pressures have remained at historically elevated levels recently, and contacts of the Bank’s Agents expect further price increases next year driven in large part by pay and energy costs. CPI inflation is still expected to fall back in the second half of next year."
It concluded: "The MPC will review developments, including emerging evidence on the implications for the economy of the Omicron variant, as part of its forthcoming forecast round ahead of the February 2022 Monetary Policy Report. The Committee will, as always, continue to focus on the medium-term prospects for inflation. The Committee continues to judge that there are two-sided risks around the inflation outlook in the medium term, but that some modest tightening of monetary policy over the forecast period is likely to be necessary to meet the 2% inflation target sustainably. The Committee will reach its assessment on the balance of the risks to medium-term inflation in light of the relevant data as they emerge."
The FTSE 100, which climbed as high as 7269 before the Bank news, is now up 68.6 points or 0.96% at 7239.35.
12.01pm: Rates lifted from 0.1% to 0.25%.
The Bank of England has raised interest rates for the first time since the pandemic started, as concerns about rising inflation outweighed worries about the negative effect of the omicron variant on the economy.
The Bank has lifted rates from 0.1% to 0.25%.
11.18am: Santa rally starting?
Leading shares continue on their merry way, with analysts wondering if this could really be the start of the Santa rally despite the growing concerns over the omicron variant.
The FTSE 100 is up 80.16 points or 1.12% at 7250.91, helped by the positive response to the US Federal Reserve's update.
Chris Beauchamp, chief market analyst at IG, said: "Stocks are rallying this morning, as a general sense of relief in the wake of the Fed pervades markets.
"With the Fed out of the way and then two probably uneventful central bank meetings around lunchtime today markets have moved back into risk-on mode, with the December rally kicking in almost precisely on schedule.
"The overwhelming feeling appears to be that of relief that the Fed’s plan for the year is now in the public sphere, giving investors something to work with as they look ahead to the next twelve months. After all, you only raise rates when the economy is improving, so there is still a case to be made for being long equities. Neither the Bank of England nor the ECB will do very much today, which perhaps accounts for why markets appear to be discounting them already...
"Aviva’s decision to throw more money at its buyback programme has perked up the shares, reminding everyone of the cash flow attractions of these insurers."
Aviva PLC (LSE:AV.) is up 1.47% at 401.7p.
International Consolidated Airlines Group (LSE:IAG) continues to fly, up 2.81% despite France now effectively banning all non-essential travel from the UK because of the omicron variant.
10.09am: To raise or not to raise?
Will the poor PMI figures influence the Bank of England's rate decision?
The drop in December's flash composite PMI provides the clearest sign yet that the Omicron variant has set back the economic recovery. It also is well below the level at which the MPC has hiked interest rates in the past: pic.twitter.com/4IRSAfyC63
— Gabriella Dickens (@G_Dickens11) December 16, 2021
9.43am: "Grim news for the UK economy"
Commenting on the PMI survey, Duncan Brock, group director at CIPS, said: "Grim news for the UK economy in December as the positive gains over the last ten months were wiped out by yet another round of restrictions and curbs on consumers and businesses.
"Government restrictions associated with the latest COVID-19 variant introduced renewed hesitation amongst consumers and more volatility in the marketplace resulting in a fall in private sector business expectations to the lowest since October 2020.
"The services sector took the brunt of these changes with the softest expansion of new orders since the pandemic recovery started in March and curbs on travel hit overseas business growth for the first time in six months. Though UK consumers stayed away from restaurants and bars in greater numbers, there was one cup of good cheer in relation to the hoped for softening in prices charges and business costs as both improved this month.
"For manufacturing, there was light at the end of tunnel with a slight recuperation in supply chain performance where more backlogs were cleared and output growth improved."
9.34am: Omicron variant hits service sector - latest survey
Weakness in the service sector has seen the UK economy grow less than expected so far this month, as the spread of the omicron variant hit consumer businesses.
In the initial estimates from IHS Markit/CIPS, the composite PMI taking in both manufacturing and services fell from 57.5 in November to 53.2, below estimates of 56.3.
UK Manufacturing PMI Dec P 57.6 (est 57.6; prev 58.1)
- UK Service PMI Dec P 53.2 (est 57.0 ;prev 58.5)
- UK Composite PMI Dec P 53.2 (est 56.3; prev 57.6)
— LiveSquawk (@LiveSquawk) December 16, 2021
IHS said the report "pointed to the worst month for the UK economy since February as private sector output growth eased considerably in response to tighter pandemic restrictions and renewed business uncertainty.
"The slowdown was centred on the service sector, which more than offset a modest acceleration in manufacturing production at the end of 2021. Meanwhile, optimism regarding the year ahead outlook for business activity eased for the fourth consecutive month in December. This largely reflected a slump in confidence among consumer-facing service providers."
Meanwhile in Europe there was also a slowdown in growth.
Latest data for the Eurozone pointed to a moderation in growth with the #PMI at a 9-month low of 53.4. A surge in COVID-19 cases and weaker growth in the service sector led to the softer uptick. However, prices pressures eased. Read more: https://t.co/qf4KfwgH8l pic.twitter.com/4uwUU8O3ZA
— IHS Markit PMI™ (@IHSMarkitPMI) December 16, 2021
9.15am: Mid-cap index outperforms as Domino's shares show a tasty increase
Leading shares are off their best levels but still strongly in positive territory.
The FTSE 100 is currently up 74.47 points or 1.04% at 7245.22 having earlier climbed as high at 7269.
Meanwhile the FTSE 250 is doing even better, gaining 254 points or 1.14% to 22,688.
The mid-cap index has been helped by a 22.6% jump in Domino's Pizza Group PLC (LSE:DOM) after the chain settled a long running dispute with its franchisees.
Cineworld Group PLC (LSE:CINE), which slumped this week on news it would have to £725mln compensation for scrapping a US$2.1bn deal to buy Canadian rival Cineplex, has recovered 14.55%.
But Boohoo Group PLC (AIM:BOO) has dropped 13.13% following a disappointing update.
The group reported higher returns and lowered its guidance for full-year sales growth to between 12% and 14% from 20% to 25%. It expected profit margins of between 6% and 7%, at least two percentage points lower than initially forecast.
Laura Hoy, equity analyst at Hargreaves Lansdown, said: “Boohoo’s results this morning seem to back up UK Chief Medical Officer Christ Whitty’s assumption that people are deprioritizing some social gatherings in light of the Omicron variant.
"The fast-fashion clothing retailer saw return rates spike in the UK, with an exceptionally high mix of dresses being sent back. But it was the international areas of the business that weighed heavily over the period with customer shipping times and uncertainty keeping a lid on demand. The real kick in the teeth was Boohoo’s decision to significantly lower its sales and profit guidance, citing everything from higher freight costs to Omicron concerns."
8.27am: Miners and airlines ahead, ex-divs down
Among the risers, mining companies are being supported by hopes the global economy can withstand the omicron variant and thus demand for commodities will continue to be strong.
Antofagasta PLC (LSE:ANTO) has added 3.86% while Glencore PLC (LSE:GLEN) is up 1.97%.
Hopes that travel will not be too badly damaged have lifted aero engine maker Rolls-Royce Holdings PLC (LSE:RR.) by 3.17% while British Airways owner International Consolidated Airlines Group (LSE:IAG) is up 2.3%.
A strong performance on Nasdaq has pushed tech investor Scottish Mortgage Investment Trust PLC (LSE:SMT) up 2.87%.
A number of companies are lower after going ex-dividend.
These include B&M European Value Retail SA (LSE:BME), down 2.47%, United Utilities Group PLC (LSE:UU.), 0.89% lower, and Primark owner Associated British Foods PLC (LSE:ABF), off 0.58%.
8.20am: Fed news helps markets sentiment
Markets have taken heart from the US Federal Reserve's latest pronouncements.
The central bank announced an acceleration of its tapering programme as expected, and also the prospect of three rate rises next year to curb inflation. But it also maintained it would monitor the effects of the omicron variant and act accordingly.
Investors have appreciated the clarity of the Fed's comments, which some might say contrast with the uncertainty surrounding the Bank of England's policy.
So following the lead elsewhere, the FTSE 100 is holding on to most of its early gains, up 80.38 points or 1.12% at 7251.13.
Richard Hunter, head of markets at interactive investor, said: "The UK market has taken its lead from a strong performance on Wall Street and a fair wind blowing through trading in Asia. In early exchanges, the main indices were marked higher as investors sought to digest the news that recovering economies next year need not be damaged by tightening monetary conditions, providing that current (and future) variants can be managed to mitigate economic fallout.
"Initial beneficiaries of the improved sentiment included the miners and airline-related stocks, with other cyclical shares also attracting interest. The mark-up was generally broad based as investors sought to benefit from recent share price pressure.
"The UK remains attractive to overseas investors on valuation grounds, and the year to date performances of the main indices have also been boosted by a return to decent levels of dividend yield, adding to the real return. On a simple basis, the FTSE 100 is now ahead by 12.3% in the year to date and the more domestically focused FTSE 250 by 10.8%, both of which would mark a decent return in 2021 given the multitude of constraints with which investors have had to deal.”
8.06am: Investors in buoyant mood
Leading shares have started off on the front foot as investors await the latest Bank of England interest rate decision.
The FTSE 100 is up 84.26 points or 1.18% at 7255.01 in early trading.
Whether the Bank raises rates today or not is still up in the air, especially given the confusion last month when it seemed to be hinting at a move and then did nothing.
The concensus seems to be there will be no change today, but whether that is the right decision is another matter.
Michael Hewson at CMC Markets said: "This week’s UK economic data, under any other normal metric, would normally have been the trigger for a modest rate rise given recent comments from Governor Andrew Bailey that he wanted to see more evidence of lower unemployment before making a move on rates. We have now seen that. If today’s decision was based on the data alone which ultimately it should be, a rate rise wouldn’t even be up open to debate, we would probably see it being delivered.
"Of course, those comments from Bailey came against a different economic backdrop six weeks ago, when the Monetary Policy Committee bottled the decision to raise rates by 0.15%, a move which would have been easy for the market to absorb, and which would have meant that the central bank could have comfortably sat on its hands today.
"That indecision came back to haunt it yesterday, after headline CPI jumped to 5.1%, well above Bank of England forecasts for this year, while RPI hit a new 30-year peak of 7.1%.
"The fall in unemployment to 4.2% was also welcome, however against a backdrop of new restrictions and a slowdown in economic activity due to Omicron, for the central bank to move today would send a very odd message when compared to how things looked at the beginning of November.
"Ultimately the bank may decide it has little choice but to adopt a strategy of hold and hope, despite evidence of more persistent price pressures in the data, and the risk we could see a move towards 6% in the months ahead. Interest rate markets are still pricing an outside chance the MPC might move today, especially given comments from Bailey earlier this week that he felt that Omicron didn’t present a financial risk to markets. Nonetheless, given the Omicron backdrop this feels like a stretch given the central banks reputation for timidity when it comes to tightening policy."
How the individual members vote will also be interesting, given there was a 7-2 split last month with two members voting for a rise.
Hewson again: "Will external MPC member Michael Saunders reverse his decision to hike given his comments earlier this month, expressing reservations about a move today due to concerns about Omicron. He did also go on to acknowledge that delaying a rise also had risks in potentially exacerbating an inflation shock further out now that workers are pushing for higher wages. What will Dave Ramsden do after he also voted to raise rates in November as well.
"The central bank has found itself in a rather large hole of its own making and will need to be extremely adroit in terms of their guidance. If they hold rates today, how do they square a 7-2 decision to hold in November, with a vote 9-0 to hold today when unemployment is lower, and inflation is higher. It would be yet another example of muddied messaging.
"The MPC needs to get back on track on delivering a message to markets that is clear and consistent. Omicron does pose a risk, but it could well be temporary, and today’s decision needs to reflect that, while keeping the prospect of a February hike very much in play. A 9-0 decision won’t send that sort of message, which suggests we could see another split decision."
6.50am: Leading shares set for upbeat start
FTSE 100 was forecast to surge in early dealings in spite of the wave of Omicron infections sweeping through the UK.
Financial spread betting firms predict London’s blue-chip index will open around 82 points higher, more than recovering yesterday’s loss of 48 to 7,171.
New cases of Covid in the UK have hit their highest since the start of the pandemic with more than 78,600 yesterday.
Actual numbers infected are likely to be much higher, said scientists if people who have not taken a test are included.
The latest research also suggests that Omicron is spread in the airways and not the lungs, which is why there have been faster rates of infection but fewer hospitalisations.
Even so, PM Boris Johnson insisted he would not shut pubs and restaurants or not yet anyway, but warned people to socialise carefully as he said cases are set to spike even higher.
BoE rate decision
Away from Omicron, interest rates are the focus today with the Bank of England announcing its latest decision.
A rise looks unlikely given the Omicron outbreak said economists, with a cautious tone of wait and see more likely though having surprised markets by not raising last month there is a chance the Bank might do so again today especially with inflation rising to a ten-year high.
Last night the US central bank responded to rising US inflation by speeding up the end of its tapering or money injection programme and indicating interest rates will rise three times in 2022 and also in 2023.
US markets rose strongly nonetheless, as the Fed repeated it sees the current surge in US prices as transitory. Dow Jones rose by 1%, the S&P 500 by 1.6% and Nasdaq by more than 2.1%.
Hyve and Petrofac
UK company announcements scheduled today include events group Hyve, which has had a very tough time due to the pandemic, and also oil and gas installation group Petrofac, whose problems have been more self-inflicted.
6.50am: Early Markets - Asia / Australia
Asia-Pacific shares were mixed on Thursday after the US Federal Reserve indicated overnight about the possibility of three interest rate hikes in 2022.
China’s Shanghai Composite gained 0.55% while Hong Kong’s Hang Seng index fell 0.33%.
The Nikkei in Japan surged 2.13% and South Korea’s Kospi rose 0.57%.
Australia’s S&P/ASX200 closed 0.43% lower at 7295.7 points, even as Reserve Bank governor Philip Lowe said he is confident of a strong 2022 fuelled by consumers unleashing A$200 billion of savings.