After the Asian markets set a negative tone early in the day with their reacted to the re-emergence of US quantitative easing, the CAC goes into the close up on the day following the IMF’s public recommendation that France start to ease their aggressive taxing policy and help stimulate recovery.
While the US markets have spent the afternoon’s trading session down, the FTSE has been focused on the Mark Carney’s first inflation report. Over the course of the morning’s meeting he outlined the Bank of England’s shift towards using unemployment levels as a gauge for altering the interest rate. Since the targeted level for unemployment is 7%, which has not been seen since 2009, and levels are currently marooned around the 7.8%, it appears that interest rates are likely to remain at the current low level of 0.5% for some considerable time.
On the corporate front, Randgold Resources have followed in the path of almost all the other precious metal miners by re-assessing the ongoing viability of operations, as the spot gold price has continued to struggle below the $1300 level.
TUI Travel has also had a rough day; in the morning it posted improving figures only for the volatile currency markets to wipe out those gains.