Europe Markets: London Markets Rise Ahead Of Bank Of England Meeting

London markets rose ahead of the Bank of England meeting after U.S. and European central banks signaled they would support their regional economies in the face of slowing growth.

How did markets perform?

The U.K.’s FTSE 100 UKX, +0.65%  is up 0.4% to 7,433.5. On Wednesday the index closed 1.2% higher.

The pound GBPUSD, +0.3165%  was up 0.6% to $1.2718, more than erasing Wednesday’s gap down of 0.1%.

Oil prices rose as tensions in the Gulf continued to increase. The West Texas Intermediate (WTI) crude oil benchmark CL.1, +3.50%  was up 3% to $55.37/bbl. while the Brent benchmark BRN.1, +2.83%  was 2.3% higher at $63.25/bbl.

What’s moving the markets?

The U.S. Federal Reserve did not cut rates, but it did signal that it was considering doing so at its policy rate announcement Wednesday, citing growing “uncertainties”. Various asset classes responded to the news, with U.S. equities rising, Treasury bond yields falling and gold reaching a five-year high.

Iran claimed responsibility for shooting down a U.S. drone, which it said had entered Iranian airspace near the Strait of Hormuz. A U.S. spokesperson told the Associated Press there was “no drone over Iranian territory”. The disagreement is the latest in tensions between the two countries exacerbated by an incident where the U.S. accused Iran of having attacked two oil tankers near the Gulf of Oman. Iran denies involvement.

In economic data, U.K. retail sales in May disappointed. They rose 2.3% year over year, revised, versus 2.5% expected.

The Bank of England meets today, and are expected to leave the bank rate unchanged as political uncertainty hangs over the U.K. economy.

Which stocks are active?

Halma PLC HLMA, +2.98%  shares climbed 2.6% after UBS upgraded the stock from sell to neutral. The analysts cited higher demand in the U.S. for the safety equipment maker, and suggested it could make acquisitions.

Shares in Dixons Carphone PLC DC, -8.03%  plummeted 12% after the electronics retailer reported disappointing fiscal 2019 earnings. The company’s pretax profit was down 22% year over year, to £298 million

RECENT NEWS

When The Wave Turns

Why Retirement Investing Is Moving Towards Resilience Jeremy Grantham’s latest market warnings have revived an old tru... Read more

Gyrostat Capital Management: July Retirement Portfolio Resilience Assessment

The Market Is Currently Presenting an Opportunity to Strengthen Retirement Portfolio Resilienc... Read more

The Invisible Risk That Decides Your Retirement

Why how investors behave matters more than what markets do and what disciplined port... Read more

Gyrostat Capital Management: The Missing Allocation In Retirement Portfolio Construction?

For decades, retirement portfolios have largely been constructed using combinations of growth assets a... Read more

When The Gate Comes Down

A Stress Test Rather Than a ScandalApollo Debt Solutions is not a blow-up story. It is something arguably more instructi... Read more

What If The Investment Industry Is Benchmarking The Wrong Things?

  Investment management is built around benchmarking.  Fund managers compare themselves a... Read more