Following Wednesday’s super-surge the European markets entered Thursday’s trading at a light jog. The FTSE 100 could only add 0.1% after the bell, though its reticence was understandable. For today brings May’s Bank of England meeting, one that comes complete with a fresh set of economic forecasts for the UK.
“From expectations of 5% growth in 2021 back in February, Andrew Bailey and the rest of the MPC are set to announce that the country will instead see GDP at 7% this year,” said Connor Campbell, financial analyst at Spreadex.
“However, those revised forecasts come with a potential catch. Much like in the US, the increasing strength of the UK economy’s rebound will cause the central bank to mull over tapering its current stimulus support.”
“Any hawkish signals could well send the FTSE 100 back below 7,000 – it’s currently at 7,060 – while leaving the pound primed to build beyond $1.39 against the dollar.”
FTSE 100 Top Movers
Next (2.9%), Pearson (2.55%) and Rolls-Royce (2.33%) are the biggest risers on the FTSE 100 at mid-morning trading.
At the bottom end, Admiral Group (-3.63%), Mondy (-2.75%) and Polymetal International (-2.10%) have seen the biggest falls.
Next
Next, the UK fashion outlet, increased its full-year profit guidance as it announced better than anticipated Q1 trading.
The FSTE 100 group, which has around 500 shops, in addition to an online presence, confirmed its central guidance for profit before tax in the 2021/2022 fiscal year is now at £720m, £20m more than what was forecast in April.