Stocks higher after Bank meeting

In London, stock indices are in the black after the Bank of England kept its monetary policy unchanged.

The FTSE 100 received a boost after new Bank governor Mark Carney followed in the footsteps of his predecessor and kept UK rates at historic lows, also maintaining the current bond-buying scheme.

This was Mr Carney’s first Bank meeting, where some economists were expecting him to discuss the possibility of increasing interest rates, with the UK economy showing signs of improvement. However the MPC’s statement instead suggested a continuation of the record low base rate for a longer time than predicted by analysts, and traders bought equities on the back of this. While UK rates remain at all-time low we may see a stronger equity market, as cheaper borrowing costs help the stock market.

European equities are also in positive territory after the cost of borrowing for Portugal dropped today, bringing a degree of stability to the eurozone. Investors also welcomed the decision by the European Central Bank to keep eurozone rates at 0.5%.

The New York Stock Exchange is closed for Independence Day, but US index futures are still open, with Dow futures up 102 points at 15,090.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.