After that disappointment, the BoE made sure to pull out all its monetary firepower this month, not only cutting interest rates for the first time since 2009 but also pledging to buy an extra 60 billion pounds ($103 billion) worth of government bonds using freshly minted cash over the next six months.
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European bank stocks are more than one percent higher today according to the Euro Stoxx Bank index.
Gilts returned 2.1 percent in the past month through Thursday, according to Bloomberg World Bond Indexes, outperforming their US and euro-region peers, amid speculation that the BOE would loosen monetary policy to counter the risk of recession after Britain voted in June to leave the European Union.
The US markets have also been slightly buoyed by the news, with the Dow Jones gaining 0.02% across the morning and the Nasdaq up 0.19% since opening. Fitch expect the referendum will take a significant toll on the economy, despite sterling’s fall in potentially supporting export sales, their latest growth forecasts are 1.7% in 2016, which is down from 1.9% in May, and 0.9% in 2017 and 2018, a reduction from 2%.
His comments highlight the Bank of England’s signal on Thursday that rates could go lower if the economy worsens. The company also cited terrorism as among the events that are making it harder to predict how its business will perform in the near future.
NOT A BIG SPLASH: Theme park operator SeaWorld said its revenue fell in the second quarter as guest numbers from Latin America dropped off amid economic turmoil there and bad weather. The price of the 2 percent bond due in September 2025 was 111.745 percent of face value.
For the year to June, sales rose 2.8%, well below the long run average of 4.5%, and down on the 3.4% sales growth seen in the year to May.
Instead, negotiating new relationships with the European Union and other trading partners is “probably the government’s most important task”, Mr. Broadbent said. Callaway surged 65 cents, or 6.1 percent, to $11.23. Nike picked up 9 cents to $54.84.
US crude fell 0.9 percent to $41.57 a barrel after surging 2.7 percent overnight.
Oil prices extended gains, giving a lift to energy and mining stocks after mixed data from the US Department of Energy showed crude supplies up, but falling gasoline stock. Brent crude, which is used to price Global oils, dropped 6 cents to $43.04 a barrel in London. It was down 1.5 percent at $1.3126 by late afternoon in London, while stock markets rose, as the weaker currency will help numerous country’s multinationals and exporters earn more money overseas.
Japan’s Nikkei 225 index ended this week half a point lower with 126 of the 225 stocks down. United Kingdom government bonds due to repaid in 10 years time saw their yield – the amount of interest paid – fall to a record low.
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The yen held steady at 101.20 per dollar, not far from Tuesday’s three-week high of 100.68 to the dollar. Germany’s DAX was up 0.7 percent and France’s CAC 40 gained 0.5 percent.
