FTSE slumps ahead of BoE report

In mid-morning trading the FTSE 100 is down 20 points in advance of Mark Carney’s first inflation report.

Traders are anxious to hear what Mr Carney has to say about inflation, as the most recent economic indicators from the UK have been positive, which could be a sign that QE is finally paying off. Mr Carney has made it clear that growth is his real focus, rather than inflation, and it appears he could be taking over as governor at the right time, as inflation isn’t too high.

In London, the mining sector is being weighed down by Randgold Resources; the South African mineral extractor posted a slump in profits, which is not uncommon given the drop in metal prices in recent months. TUI Travel’s figures were good, but not good enough to entice buyers; the travel company stated that numbers were down in Germany and France.

In the US, we are expecting the Dow to open 60 points lower at 15,458, after concerns over tapering increased following statements from two Federal Reserve members which suggested it could be a reality as early as next month.

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