Both the Bank of England and European Central Bank kept interest rates at record lows of 0.5%, and this prolonged availability of cheap money means it is costs less to invest in the equity markets. After recent economic updates from the UK have been positive, the Bank of England decided to keep the bond-buying programme at £375 billion per month.
Aer Lingus has announced a 0.9% increase in the number of passengers in August, compared with the same period last year, and the share price is up 0.15%. Ryanair is still suffering from yesterday’s profit warning however, with the stock off 0.1%.
Marks & Spencer is up 3% after HSBC upgraded its rating of the retailer from ‘neutral’ to ‘overweight’. The London-listed bank said the retailer is well positioned to benefit from the UK’s recovery.
The Spanish government raised €4 billion from a ten-year bond auction earlier today at a yield of 4.53%, the lowest cost of borrowing in three years.
We are expecting the Dow Jones to open ten points higher at 14,940, after US Jobless claims dropped by a bigger-than-expected 9000.