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Overnight the Reserve Bank of Australia (RBA) decided to keep interest rates at 2.75% – a historic low – but stated that there is still room for further rates cuts in future. Traders were expecting no change in policy, but the comments about the potential for further monetary easing indicate that the RBA expects the Australian economy to slow down.
It is likely that trading volumes and market volatility will be low during the middle of the week as the New York Stock Exchange is only open for a half day on Wednesday and is closed on Thursday for a public holiday.
Fashion retailer Burberry has been upgraded by HSBC; the investment bank raised its price target for the luxury brand designer from 1530p to 1750p. The stock is now up 3% at 1408p.
Ocado announced a pre-tax loss for the first half of 2013 of £3.8 million, which compares with that of £0.2 million for the same period the previous year. The share price is down 2.5% at 308p.