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.
Previously, traders felt that the Fed would keep its stimulus package unchecked, but it now looks like there is a degree of indecision. Traders will be listening carefully to tonight’s statement to try and ascertain what the Fed is going to do, and any suggestion of a tapering of the quantitative easing scheme could trigger a round of selling.
The London-listed banks are under pressure after the parliamentary commission on banking standards, led by Andrew Tyrie, recommended delaying paying bonuses for up to ten years, as well as prison sentences for reckless bosses. If these proposals are implemented it is likely to have an impact on the future profitability of the banks as it could result in a more risk-averse environment. The banking sector is subsequently off 0.6% this morning.
Homebuilder Berkeley Group announced a full-year pre-tax profit of £270 million, which is an increase of 26% on the year. The share price is currently up 3%.