BoE Decides To Keep Interest Rate On Hold

3 min read | June 20, 2019 06:00 PM BST | By Team Kalkine Media

Global Markets: Equity indices at Wall Street were oscillating in green, with the broader index S&P 500 added 23.62 points or 0.81% in today’s trading session and trading at 2,950.08, the Dow Jones Industrial Average index jumped 217.07 points or 0.82% against the yesterday’s closing level and quoting at 26,721.07 and the technology benchmark index NASDAQ Composite expanded 50.89 points or 0.64% in the Thursday’s market session and quoting at 8,038.22, respectively, at the time of writing.

Global News: After the Federal Reserve indicated that it could cut interest rates as soon as next month, the S&P 500 index hit a record high on Thursday and benchmark 10-year Treasury yields dropped below 2% for the first time in more than 2-1/2 years. Jobless claims dropped by 6,000 to 216,000, falling more than expected, pointing to strength in the underlying labour market. Escalating already fierce tensions in the Gulf region, Iran shot down a US military drone and said it was on its territory, an allegation refuted by US authorities.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 20.90 points or 0.28% higher at 7,424.44, the FTSE 250 index snapped 138.67 points or 0.72% higher at 19,384.13, and the FTSE All-Share Index ended 13.90 points or 0.34% higher at 4,054.83 respectively. European benchmark index STOXX 600 ended 1.39 points or 0.36% higher at 386.16 respectively.

European News: Amid growing fears of a no-deal Brexit and risks from global trade tensions, the bank of England voted unanimously to hold interest rates at 0.75 and cut its growth forecast for Britain's economy to zero for the second quarter of the year. As investors forecasted that rates would not rise in the next couple of years, sterling dropped against the euro and the US dollar on Thursday, helping the FTSE 100 to climb to a session high as its international stocks got a lift. In the fourth ballot of Conservative lawmakers, Sajid Javid was eliminated from the race and Boris Johnson continued his progress towards the top job.

London Stock Exchange (LSE)

Top Performers Stocks: BCA MARKETPLACE PLC (BCA), DOMINO'S PIZZA GROUP PLC (DOM), and DUNELM GROUP PLC (DNLM) surged by 22.30 per cent, 10.59 per cent and 8.52 per cent respectively.

Top Laggards Stocks: CARNIVAL PLC (CCL), NANOCO GROUP PLC (NANO), and CINEWORLD GROUP PLC (CINE) decreased by 12.00 per cent, 9.72 per cent and 8.01 per cent respectively.

FTSE 100 Index

 FTSE100 Index: 5-days Price Chart as on June 20, 2019. (Source: Thomson Reuters)

Top Risers Stocks: FRESNILLO PLC (FRES), INTERNATIONAL CONSOLIDATED AIRLINES GROUP S.A. (IAG) and EASYJET PLC (EZJ) rose by 5.54 per cent, 2.93 per cent and 2.86 per cent respectively.

Top Fallers Stocks: CARNIVAL PLC (CCL), EVRAZ PLC (EVR) and UNITED UTILITIES GROUP PLC (UU.) reduced by 12.00 per cent, 3.70 per cent and 3.46 per cent respectively.

Top Active Volume Leaders: LLOYDS BANKING GROUP PLC, VODAFONE GROUP PLC, and BP PLC.

Top Risers Sectors: Basic Materials (+1.24%), Energy (+1.17%) and Industrials (+1.10%).

Top Fallers Sectors: Consumer Cyclicals (-2.09%), Consumer Non-Cyclicals (-0.31%) and Financials (-0.28%).

Foreign Exchange and Fixed Income

FX Rates*: GBP/USD and EUR/GBP were exchanging at 1.2702 and 0.8891 respectively.

10-Year Bond Yields*: US 10Y Treasury and UK 10Y Bond yields were trading at 1.998% and 0.810% respectively.Â

*At the time of writing


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