FTSE up ahead of Carney guidance

In mid-morning trading the FTSE 100 is up 20 points as traders await Mark Carney’s forward guidance.

Traders wait in anticipation as Mark Carney is expected to move the goal posts for monetary policy. 

The Bank of England governor previously cited a 7% unemployment rate as a trigger point for thinking about raising interest rates, assuming he was buying himself a considerable amount of time; however now the rate is at 7.1% he will be forced to broach the issue. It’s refreshing to see a policy maker go back on his words because things have gone his way for once; however, Mr Carney can’t keep changing the targets as he goes along so he will probably keep his updated objectives vague.

The mining sector is providing the foundations to FTSE 100 gains again this morning, 
as a surprisingly high trade balance from China overnight has put the mineral extractors in demand. A double-digit increase in imports suggests China is still hungry for metals. 

Reckitt Benckiser, the maker of Cillit Bang, has revealed an increase in like-for-like sales but has struggled in some emerging markets. 

In the US we are expecting the Dow Jones to open two points lower at 15,992, as traders take their profits following the Yellen effect. 

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