On Friday, the FTSE 100 and European markets found themselves reflecting the impact of crucial data releases and central bank decisions. The Bank of England (BoE) had recently opted to maintain interest rates at 5.25%, marking the third consecutive instance of rate stability; however, after talks with the European Central Bank (ECB) on Thursday, 14th December, the BoE has propelled rates higher against the dollar, with Bank Chief Andrew Bailey suggesting that interest rates would persist at elevated levels and create a “restrictive” borrowing environment for the foreseeable.
FTSE 100 and European markets awaits BoE and Fed’s interest rate verdict
On the currency front, the pound continued to trade at around $1.27 on Friday morning. Meanwhile, the FTSE held a steady position, the DAX in Frankfurt exhibited a 0.5% increase, and the CAC in Paris rose by 0.3%.
Additionally, the flash UK PMI Composite Output Index for the private sector reached a six-month high at 51.7, indicating substantial positive growth. The services sector also exhibited positive signs, with a Business Activity Index of 52.7. However, the manufacturing sector showed a slight dip against its increase earlier this week, with a Manufacturing PMI of 46.4.
Don’t miss out on the latest news, subscribe to LeapRate’s newsletter
In global markets, Asia presented a mixed picture on Friday, with gains in Japan’s main index and a rally in Hong Kong. Positive sentiments prevailed in the US as well, with major indices closing higher following surprising gains in retail sales and a dip in the 10-year Treasury below 4%, instilling confidence among investors for the year ahead.
