The FTSE 100 index decreased 0.2% on Thursday, falling 11.17 points to 7,516.50 as the London stock market waits for the European Central Bank’s (ECB) verdict on interest rate cuts and inflation data, which will be announced this afternoon at 1315 GMT.
ECB interest rate verdict causes FTSE 100 to fall
Across the channel, the CAC 40 was down 0.1%, while Frankfurt’s DAX 40 also fell 0.2%. To add to market turmoil, British sterling also fell overnight, opening at $1.2722 this morning from its $1.2744 at market close on Wednesday. The euro slipped from $1.0904 to $1.0888.
Christine Lagarde, President of the ECB, hinted at rate cuts during Q2 of 2024, although market sentiment is still holding out hope for cuts to come in March despite Lagarde firmly denying this timeframe.
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As well as ECB talks, US economic growth data is due to be released this afternoon at 1500 GMT, with growth domestic figures from the Bureau of Economic Analysis forecast to show a 2.0% US economy growth in Q4 of 2023. Although satisfactory, this figure is still below the 4.9% growth recorded in Q3 of last year.
