Live Chat

FTSE 100 index notches fresh record ahead of BoE policy decision

European Equities Shine, FTSE 100 Index Hits Fresh Record

European stock markets rose again early Wednesday to add to gains of around one per cent on Tuesday as financials boosted the mainland indices.

The FTSE 100 index added another half a per cent for a fresh record above 8,350, whilst gilt yields fell further ahead of the Bank of England decision tomorrow, pushing utilities higher.

The Euro Stoxx 600 is up 7.8% so far this year, while the FTSE 100 index has gained 8.1% as of May 8.

Sterling trades lower against the dollar with traders cementing bets on the Bank of England moving faster than the Fed with cuts – 2 cuts this year are expected. Wall Street was essentially flat on Tuesday. Asian shares were mixed with Tokyo down 1.5% despite the weaker yen, which has fallen for three straight days as the market moves to retest the BoJ’s resolve.

In fact, there were some pretty hawkish noises coming from one FOMC member. “With inflation in the most recent quarter moving sideways, it raises questions about how restrictive policy really is,” said Neel Kashkari, president of the Minneapolis Fed. Rates would stay high for an “extended period”, he added.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Currency Search
Currency
Index
Shares
ETFs
Bonds
Crypto
Commodity

Instrument

Search
Clear input
Occidental
Siemens
Morgan Stanley
GSX Techedu
Marston's
Alibaba
Skillz Inc
Macy's
Lemonade
Lululemon
Plug Power
Amazon.com
Verizon
Thermo Fisher
Mondelez
General Motors
LVMH
IAG
Cinemark
PETROCHINA
Royal Bank Canada
Anglo American
F5 Networks
Nikola Corporation
Zoom Video Communications
Air France-KLM
Comcast
UniCredit
The Cheesecake Factory
Barrick Gold
Bayer
Toro
Kuaishou
Gen Digital Inc
Tilray
Xiaomi
SMCI
Wish.com Inc
Adobe
DISNEY
Coinbase Inc
UiPath Inc
T-Mobile
Rio Tinto
Schlumberger
Invesco Mortgage
Hammerson
Volkswagen
Sartorius AG
ROBLOX Corp
ChargePoint Holdings Inc
UPS
Pinterest Inc
Continental
Jumia Technologies
Medtronic
PayPal
Twilio
Freeport McMoRan
UnitedHealth
SIG
Tesla
Lyft
Boeing Co
Annaly Capital
Santander
Teladoc
Li Auto
CrowdStrike Holdings
Deere
Fedex
Naspers
ProSiebenSat.1
Bilibili Inc
Costco
New Oriental
NVIDIA
Iberdrola
Gilead
American Express
Apple
Airbus
GoPro
Chevron
HSBC HK
Two Harbors Investment aration
easyJet
Inditex
BlackBerry
Anheuser-Busch Inbev
Deliveroo Holdings
Hubspot
Applied Materials
GameStop
British American Tobacco
Trade Desk
McDonald's
AMC Entertainment Holdings
Adidas
AIA
Bristol Myers
Novavax
TUI
Fresnillo
Shell plc (LSE)
Nasdaq
Ceconomy
Lithium Americas Corp
Rivian Automotive
Qorvo
MercadoLibre.com
Coca-Cola Co (NYSE)
HDFC Bank
Roku Inc
Infinera
Arista
Total
JnJ
Dave & Buster's
PG&E
ON Semiconductor
Diageo
XPeng Inc
ASML
Vodafone
Airbus Group SE
Campari
Telecom Italia
Glencore plc
HSBC
ZIM Integrated Shipping Services Ltd
Kraft Heinz
Spotify
Aurora Cannabis Inc
Etsy
Goldman Sachs
Norwegian Air Shuttle
Abbott
Snap
Linde PLC
Blackstone
Cellnex
Tencent
Barclays
Virgin Galactic
JP Morgan
Allianz
RTX Corp
Taiwan Semi
Wal-Mart Stores
Intel
DoorDash
Wayfair
SONY
II-VI
Norwegian Cruise Line
BioNTech
Palantir Technologies Inc
CNOOC
Cisco Systems
Electrolux
ALIBABA HK
Robinhood
Vonovia
British American Tobacco
SAP
Ford
Cameco
Peloton Interactive Inc.
Toyota
Amgen
AT&T
Infosys
Starbucks
Lloyds
Qualcomm
Canopy Growth
3D Systems
CarMax
LUCID
Eni
AMD
Target
IBM
FirstRand
Lumentum Holdings
Alphabet (Google)
Workday Inc
ASOS
Conoco Phillips
Moderna Inc
Trump Media & Technology Group
Fuelcell
MerckCo USA
Salesforce.com
Hermes
BASF
AstraZeneca
Christian Dior
Broadcom
Oracle
Vipshop
CCB (Asia)
Nio
Block
Uber
Accenture
Meta (Formerly Facebook)
Berkshire Hathaway
Wells Fargo
Blackrock
Rolls-Royce
Pfizer
Microsoft
Home Depot
Mastercard
Lufthansa
Marriott
AbbVie
China Life
Baidu
Eli Lilly
DeltaAir
Chipotle
BP
General Electric
eBay
Quanta Services
Netflix
Micron
Visa
Golar LNG
ADT
JD.com
American Airlines
Porsche AG
Palo Alto Networks
Teleperformance
Lockheed Martin
Upstart Holdings Inc
Delivery Hero SE
Airbnb Inc
Nel ASA
GoHealth
Shopify
Aptiv PLC
Bank of America
PepsiCo
Philip Morris
Exxon Mobil
Procter & Gamble
Beyond Meat
Snowflake
L'Oreal
Sea
Porsche
Deutsche Bank
Nike
Unilever
CAT
Prosus N.V.
Unity Software
Citigroup
Upwork Inc.
Vir Biotechnology

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

Why is Inflation so Sticky?

Lots of factors of course – inherently it’s difficult to push the toothpaste back in the tube. However, other factors may be particular to this cycle due to the unique monetary and fiscal response to the pandemic.

J.P. Morgan notes that the US consumer wealth “has increased ~$37T, or +33.6%, since the beginning of 2020, including $5T in realized capital gains from 2020 – 2022. Those capital gains, even if taxed at 37%, mean that [Fed models] are undercounting Consumer cash levels by at least $3T... if an investor is using the Excess Savings metric, it gives a false sense that the US Consumer is on the precipice of rolling over.”

Consumers are loaded and the Treasury is injecting yet more with layers of debt: $1tn every 100 days and debt interest payments are now in excess of $1tn.

Legendary investor Stan Druckenmiller on “Bidenomics” and the current government deficit: “If I was a professor, I’d give him an F. Treasury is still spending like we’re in a depression. We have a 7% budget deficit at full employment… it’s unheard of.”

Not So Green and Pleasant

Back to Britain and gilt yields have dropped sharply this week as traders returned from the Monday bank holiday. Indeed, here’s one good reason to cut: The Treasury Select Committee report on finance for SMEs found a “difficult environment' where, as the Chair put it, 'bank and regulators are making a tough world... needlessly tougher”. Cutting rates could help. GBPUSD has dropped back from above 1.26 to below 1.25.



Bank of Japan Reluctant to Raise Rates, Yen Weakness Continues

Meanwhile, the Bank of Japan is supposed to be going in the other direction and raising rates, but the market has sniffed out that it doesn’t really want to, resulting in pronounced weakness for the Japanese yen and wild gyrations in JPY crosses.

BoJ governor Ueda told parliament: “We need to be mindful of the risk that the impact of currency volatility on inflation is becoming bigger than in the past... there's a chance we may need to respond with monetary policy.”


German Industrial Production Falls in March, Adds to ECB June Cut Bets

German industrial production declined in March, down by 0.4% compared to the previous month, following the 1.7% rise in February. Just adds to the sense that the European Central Bank is a surefire to cut in June.

Crude oil trades at a two-month low as traders eye a potential ceasefire in the Middle East. What’s underpriced by the market is some unclenching in commodities more generally as Ukraine and Russia move inevitably towards an armistice.



When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Wednesday, 20 November 2024

Indices

MicroStrategy Stock Surges as Bitcoin price rises to fresh record above $94K

Wednesday, 20 November 2024

Indices

Nasdaq futures decline, Nvidia shares dip following the earnings report

Mixed market performance

Wednesday, 20 November 2024

Indices

Markets Mixed Amid Inflation, Tech Rally, and UK Economic Woes

Tuesday, 19 November 2024

Indices

Nvidia shares rallied on AI spending ahead of Nvidia Q3 earnings 2024

Live Chat