Bailey comments power FTSE 100 while hitting sterling
The FTSE 100 has been a given a lift by the Bank of England governor today, while other indices have had a choppier start to the month, says Chris Beauchamp, chief market analyst at online trading platform IG.
Stocks endure a choppy session on first day of March
“While European and US futures came into the day looking stronger thanks to Chinese factory data, they have found the going harder throughout the rest of the session. After a miserable second half of February, hopes were high that new month flows might help stocks find their footing, even as worries about the path of interest rates remained. US stocks have steadied after a weaker open, though we are yet to see an enthusiastic wave of buying.”
Bailey knocks the pound and lifts FTSE 100 after rate comments
“It would be a brave person who put much faith in Andrew Bailey’s comments about UK interest rates, but his view that rates might not need to keep rising has put the FTSE 100 on top among global indices while seeing the pound drop back against the dollar and fall more dramatically against the euro. After being among the first to flash its hawkish plumage, the BoE now seems to have donned more dovish attire, though another couple of months of strong data could see that outfit put away again.
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