EUROPE MARKETS: London Stocks Maintain Gains After Bank Of England Keeps Rate On Hold
20 June 2019 - 11:29PM
Dow Jones News
By Dave Morris
London stocks traded higher Thursday as of the Bank of England
meeting kept interest rates on hold, but economic growth could come
under threat from Brexit and global trade issues, the central bank
warned
Stocks are being supported globally after the U.S. Federal
Reserve and the European central banks this week signaled they
would support their regional economies in the face of slowing
growth.
How did markets perform?
The U.K.'s FTSE 100 is up 0.7% to 7,454.4. On Wednesday the
index closed 1.2% higher.
The pound was up 0.3% to $1.2681, 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 rallied 3% to
$55.37/bbl. while the Brent benchmark was 2.5% higher at
$63.405/bbl.
What's moving the markets?
The U.S. Federal Reserve did not cut interest rates
(http://www.marketwatch.com/story/fed-holds-interest-rates-steady-will-now-closely-monitor-data-in-shift-away-from-patient-stance-2019-06-19),
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
(http://www.marketwatch.com/story/gold-soars-to-five-year-high-after-fed-hints-at-interest-rate-cuts-2019-06-20).
All nine members of the BOE's Monetary Policy Committee
(http://www.marketwatch.com/story/bank-of-england-keeps-interest-rates-on-hold-as-trade-brexit-uncertainty-weigh-2019-06-20)supported
a decision to leave interest rates unchanged, but there was plenty
of discussion about intensifying trade tensions and worries about
the country's economic outlook amid uncertainty over the timetable
of the U.K.'s exit from the European Union.
In economic data, U.K. retail sales in May disappointed. They
rose 2.3% year over year, revised, versus 2.5% expected.
Iran claimed responsibility for shooting down a U.S. drone
(http://www.marketwatch.com/story/iran-says-it-shot-down-us-drone-amid-rising-tensions-2019-06-19),
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.
Which stocks are active?
Halma PLC (HLMA.LN) shares climbed 3% 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.LN) plummeted 6% after the
electronics retailer reported disappointing fiscal 2019 earnings
and
(http://www.marketwatch.com/story/dixons-carphone-swings-to-loss-on-higher-costs-2019-06-20)
warned over 2020 earnings. The company's pretax profit was down 22%
year over year, to GBP298 million
(END) Dow Jones Newswires
June 20, 2019 09:14 ET (13:14 GMT)
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