The FTSE 100 opened higher, up 0.26% at 7,682.02, buoyed by a higher close on Wall Street, rising oil prices and Royal Bank of Scotland news.
Asian markets also traded higher across the board except for Singapore, with the Hang Seng up 0.9% at 30,805.88 and the Nikkei 0.3% higher at 22,486.01. The biggest surprise this morning came from BT as the company’s shares plunged 7.59% to 238.60 after the telecoms firm revealed plans to plug an £11.3 billion gap in its pension budget, to cut 13,000 jobs and to move its London headquarters. The strategy update was released as part of the company’s fourth quarter results which showed a pre-tax profit of £872 million, broadly in line with expectations, and a 1% increase in adjusted EBITDA to £2.1 billion.
In contrast, Royal Bank of Scotland shares started the day on a positive note, up 6.12% at 289.60, after the bank agreed to a civil penalty to settle a mortgage probe in the US. RBS said it will pay $4.9 billion in fines to settle an investigation by the US Department of Justice into mis-selling of residential mortgage-backed securities between 2005 and 2007. The UK government plans to re-privatise RBS by selling £3 billion before the end of 2019 but was holding back until the DoJ dispute was resolved. All eyes today will be on the Bank of England rate decision due to come out at 11.00. A few weeks ago a rate increase to 0.75% from the current 0.50% seemed a given but after a series of weak economic data the decision will be less straight forward. If there is a move higher it will have the capacity to stymie house price growth and consumer spending and will in the medium term affect home builders and high street shops.
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EUR/USD consolidates recovery below 1.0700 amid upbeat mood
EUR/USD is consolidating its recovery but remains below 1.0700 in early Europe on Thursday. The US Dollar holds its corrective decline amid a stabilizing market mood, despite looming Middle East geopolitical risks. Speeches from ECB and Fed officials remain on tap.
GBP/USD advances toward 1.2500 on weaker US Dollar
GBP/USD is extending recovery gains toward 1.2500 in the European morning on Thursday. The pair stays supported by a sustained US Dollar weakness alongside the US Treasury bond yields. Risk appetite also underpins the higher-yielding currency pair. ahead of mid-tier US data and Fedspeak.
Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions
Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.