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