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European markets seen opening higher ahead of BOE rate decision … CNBC May 10, 2018 at 06:50AM

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European markets seen opening higher ahead of BOE rate decision … CNBC

 

European markets seen opening higher ahead of BOE rate decision

  • On Thursday, the Bank of England (BOE) is expected to issue its latest interest rate decision and publish its inflation report.

  • After the news broke about the U.S. exiting the Iran deal on Tuesday, oil prices have been on the rise and continued to extend gains on Thursday.

Alexandra Gibbs

European markets are expected to begin Thursday morning on a positive note, as investors turn their attention to a monetary policy meeting by the U.K.’s central bank.

Looking to major bourses, the U.K.’s FTSE 100 is seen opening up 17 points at 7,680, while the French CAC 40 is expected to rise 16 points at 5,551, while Germany’s DAX is poised to start the day higher by 58
points at 13,001, according to IG. Peripheral markets also point to a positive open.

Politics has been a major focus over the course of this week, from an election result in Asia and the easing of geopolitical tensions, to news that President Donald Trump would be pulling the U.S. out of the Iran
nuclear accord.

After the news broke about Iran on Tuesday, oil prices have been on the rise and continued to extend gains on Thursday, with Brent hovering around $77.75 per barrel, while U.S. crude fluctuated around $71.70.
Following the U.S. announcement, allies in Europe have been trying to salvage the Iran deal, and preserve their trade relations with the Middle Eastern nation.

Markets in Asia edged higher, lifted by a rise in oil prices as investors digested news out of Malaysia. On Thursday, it was announced that Mahathir Mohamad had led an opposition coalition to victory in the country’s
national election.

Back in Europe, the Bank of England (BOE) is expected to issue its latest interest rate decision and publish its inflation report. During Thursday’s meeting, the BOE’s Monetary Policy Committee is projected to
hold fire on changing its interest rate strategy, despite analysts previously expecting a different outcome in recent weeks.

Around four weeks ago, short-term interest rates had been pricing in another 25 basis point rate hike with near certainty, however BOE Governor Mark Carney suppressed expectations following comments during a BBC
interview, where he said that data was coming in on the “softer side.”

Are central banks too powerful? Fmr. Bank of England governor weighs in  10 Hours Ago | 05:50

In corporate news, BT, Randgold Resources, Next, Superdry, Ferrovial, Morrisons, and Rusal are all expected to publish financial updates.

No major economic data are scheduled to be published.

 

Read More: European markets seen opening higher ahead of BOE rate decision … CNBC

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