MPC voting sparks FTSE selloff

After the strong start to the week European equities have gotten off to a wobbly start today.

Bank of England sign
Source: Bloomberg

The FTSE had understandably been preoccupied with how the MPC would vote, while eurozone equity markets fretted over tonight’s US FOMC minutes. 

The Monetary Policy Committee has seen two members vote for change, and this is the first time we have seen anything other than 9-0 since July 2011. This opens the door to the possibility of an interest rate increase being squeezed in before the end of the year, but with the weaker-than-expected inflation figures posted yesterday this is far from a foregone conclusion. On one hand the central bankers are pointing towards change, despite the economic data being far from supportive; a perfect balance of uncertainty to keep markets guessing.

Disagreements over what to do with US unit Parsons Brinkerhoff has seen Carillion’s third offer for Balfour Beatty rejected, as the attempted takeover looks increasingly hostel.

With money burning a hole in its pockets, Glencore has decided to prop up its shares with a timely $1 billion share buyback.

Having to pay one multi-hundred million dollar fine to US regulators is unfortunate but, that Standard Chartered has had to go back and pay a further $300 million for similar offences just looks careless.

Carlsberg don’t do profits warnings, but if they did it would heavily involve the company’s exposure to the Russian market. 

Even with tonight’s FOMC meeting minute hanging over the markets and European traders looking a little wobbly, a concerted effort for the Dow Jones to hit 17,000 looks almost inevitable today. Having closed less than 100 points away from that psychological target should ensure its mesmerising level. 

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