FTSE 100 edges higher, BoE drops mortgage market affordability test

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FTSE 100 edges higher, BoE drops mortgage market affordability test

 FTSE 100 edges higher, BoE drops mortgage market affordability test
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UK Market News: The UK stock market advanced on Monday after a dreadful last week over economic worries, and further interest rate hikes fear from major central banks. The blue-chip FTSE 100 index gained over a per cent on Monday, boosted by gains in financial and energy stocks. The Bank of England (BoE) announced that its Financial Policy Committee would withdraw the mortgage market affordability test with effect from 1 August 2022. The test was introduced in 2014 to specify a stress interest rate for lenders when assessing potential borrowers’ mortgage repayment ability.

EasyJet Plc (LON: EZJ): The share of low-cost airline group EasyJet fell by around 3%, with a day’s low of GBX 418.50. The company announced that it faced a £200 million hit after it cut thousands of flights this summer amid travel chaos. The airline group is reducing capacity to 90% until the end of September.  

Euromoney Institutional Investor Plc (LON: ERM): The share of one of Europe’s largest business and financial information company, Euromoney Institutional, were up by around 26.5%, with a day’s high of GBX 1,412.00. The company announced that it is in talks with a consortium comprising private equity company Astorg Asset Management S.ar.l and Epiris LLP over a potential £1.6 billion takeover.

Rank Group Plc (LON: RNK): The share of the UK-based gambling company Rank Group Plc, was down by over 16.5%, with the day’s low of GBX 80.30. The company lowered its annual profit guidance for a second time due to weaker than expected performance at its Grosvenor casino business and inflationary cost pressures.

US Markets: It is going to be an extended weekend for the US stock market as 20 June  (Monday) is officially a stock market holiday on account of Juneteenth National Independence Day. While the holiday technically occurs on the anniversary of Union Army Gen. Gordon Granger’s June 19, 1865, the US stock market is closed in observance on Monday. It is for the first time that Juneteenth is being observed as a federal holiday.

European Indices Performance (at the time of writing):

European Indices Performance

 FTSE 100 Index One Year Performance (as on 20 June 2022)

1 Year FTSE 100 Chart

 (Source: Refinitiv)

Top 3 Volume Stocks in FTSE 100*: Vodafone Group Plc (LON: VOD), Lloyds Banking Group plc (LLOY), BP Plc (BP.).

Top 3 Sectors traded in green*: Energy (3.64%), Financials (2.77%) and Utilities (1.41%).

Top 3 Sectors traded in red*: Real Estate (-0.25%).

London Stock Exchange: Stocks Performance (at the time of writing)

London Stock Exchange stock performance

Crude Oil Future Prices*: Brent future crude oil (future) price and WTI crude oil (future) price were hovering at $113.28/barrel and $108.33/barrel, respectively.

Gold Price*: Gold price hovered at around US$ 1,840.10 per ounce, down by 0.03% against the prior day’s closing.

Currency Rates*: GBP to USD: 1.2262; EUR to USD: 1.0525.

Bond Yields*: US 10-Year Treasury yield: 3.231%; UK 10-Year Government Bond yield: 2.5610%.

*At the time of writing

EasyJet Plc (LON: EZJ): The share of low-cost airline group EasyJet fell by around 3%, with a day’s low of GBX 418.50. The company announced that it faced a £200 million hit after it cut thousands of flights this summer amid travel chaos. The airline group is reducing capacity to 90% until the end of September.  

Euromoney Institutional Investor Plc (LON: ERM): The share of one of Europe’s largest business and financial information company, Euromoney Institutional, were up by around 26.5%, with a day’s high of GBX 1,412.00. The company announced that it is in talks with a consortium comprising private equity company Astorg Asset Management S.ar.l and Epiris LLP over a potential £1.6 billion takeover.

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