Hawkish BoE to drag FTSE down?

The FTSE is back to flat at 7625, as a stronger USD (strengthened up by hawkish comments from the Fed Chair Powell) hinders heavyweight Energy & Resources stocks.

Hawkish BoE to drag FTSE down?

The FTSE is back to flat at 7625, as a stronger USD (strengthened up by hawkish comments from the Fed Chair Powell) hinders heavyweight Energy & Resources stocks. With oil already on the back-foot due to the imminent tapering of production cuts by OPEC & allies (the only question being how much), markets await imminent BoE interest rate decision for direction. For the moment, GBP weakness is helping to protect the Index from further losses, however, a more hawkish BoE statement could give GBP a boost, sending FTSE even lowers

Contributors:  FTSE flat, in a tug of war, with the likes of BATS/ULVR/DGE/AZN (defensives, weaker GBP), Shire (Takeda +4.5% on UBS upgrade), SKY (M&A; higher bid coming?) and RIO (weaker GBP) pulling positively, whilst HSBC (China exposure), RDSB (lower oil prices), MRO (reversal, profit-taking), BARC (risk-off) and UU (Ex-div) pull negatively. Technicals: The FTSE100 broke below week-long rising support, but holds above Tuesday’s 7618 lows.

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Categories: Analysis, News
Tags: FTSE 100, oil

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