European Markets Open Lower Ahead Of BoE Meeting

Google+ Pinterest LinkedIn Tumblr +

European Markets Open Lower Ahead Of BoE Meeting

Federal Reserve Raises Interest Rates

Crude and Brent Tumble on Stockpile Data

 

 

Market Recap – This week in a nutshell:

The pound stabilised this week amid calls to adopt a “softer” Brexit. Specifically, a host of senior figures within the Conservative Party, including former Prime Minister David Cameron, urged Theresa May to listen to other parties on how to leave the EU. Meanwhile, markets in the U.S., paired some of the losses caused by lagging technology stocks. In Italy bank stocks also edged higher after the country’s economy minister Pier Carlo Padoan stated that a deal to rescue two Italian banks is close.*

 

Thu, June 15: In Today’s Markets…

 

1. European Markets Open Lower Ahead Of BoE Meeting

Bourses in Europe started the day on a bearish note today as investors digested a rate hike by U.S. Federal Reserve. Markets will largely be focusing on updates from the Bank of England and the Swiss National Bank today. The Bank of England is set to announce its latest monetary decision at 11:00 GMT while the Swiss National Bank will announce its latest rate decision at 7:30 GMT. Meanwhile, there have been various reports that President Donald Trump is currently being investigated by a special counsel for possible obstruction of justice, following Comey’s hearing.*

 

2. Federal Reserve Raises Interest Rates

The U.S. Federal Reserve decided to raise rates by a quarter point yesterday but investors are worried about weaker-than-expected inflation readings. The Fed raised interest rates for the second time in three months and further announced that it would begin cutting holdings of bonds and other securities this year. The Federal Reserve’s committee also stated that the economy continues to strengthen, job gains remain solid and that the recent softness in inflation is largely transitory.**

 

3. Oil Tumbles After U.S. Crude Stockpiles Fall Less Than Forecast

Oil prices plummeted during late North American trading on Wednesday and extended their overnight losses today on solid crude stockpile data. Specifically, the latest crude stockpile counts revealed that U.S. crude supplies fell less than forecast last week, reinforcing concerns of a global supply glut. The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 1.7 million barrels in the week ended June 9 while market analysts had expected a crude-stock decline of around 2.8 million barrels. Crude Oil WTI was last seen trading 0.2 percent lower today at $44.66, while Brent Oil traded flat at $46.99 as of 7:00 GMT.***

 

*Source: Reuters
**Source: CNBC
***Investing.com

START TRADING NOW

Your capital is at risk. T&Cs apply

Share.
Risk Warning: Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. General Risk Disclosure