FTSE 100 surges after BoE hints at rate cuts to come
|Rate cuts are on the horizon in the UK, while stocks continue to surge in the wake of yesterday’s Fed meeting, leading to a very solid day for equity markets, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 soars to ten-month high
“Markets have continued their euphoric reaction to this week’s central bank events, with the FTSE 100 closing in on 7900 for the first time since May last year. UK stocks have lagged far behind, but with the Bank of England now on a path to cutting rates we could see the FTSE 350 make further strides as the flow of investor money finally heads to the UK.”
US markets continue their gains
“Rarely as a ‘no change’ policy meeting produced quite the excitement as last night’s Fed meeting. While nodding towards stronger than expected, the Fed’s decision to stick to current plans has resulted in yet more record highs for the Dow, S&P 500 and Nasdaq 100. Things do seem to be getting a little excessive in markets, especially since the S&P 500 has yet to register a pullback of more than 3% so far this year.”
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