Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
News

Stocks bounce back post BoE hawkish vote

The FTSE 100 is higher on the day as stocks rebounded after yesterday’s sell-off.

Traders have gotten to grips with the surprise that three members of the Bank of England (BoE) voted to hike interest rates. Bargain hunting is in play today as dealers pick up cheap stocks. The political situation in the UK seems to be improving, as the Queen’s speech will take place on Wednesday, even if the Conservatives don’t have a deal in place with the Democratic Unionist Party (DUP) by then. This sign of political stability has added to the boost in investor confidence.

Tesco is lower on the day despite posting a 2.3% rise in like-for-like sales for the first quarter, and analysts were expecting an increase of 2.2%. The fresh food division performed well, and the supermarket is trying its best to keep prices down in this rising inflation environment.

The Nikkei 225 closed up 0.56% after the Bank of Japan (BoJ) voted to keep their monetary policy unchanged. The BoJ have a very loose monetary policy in place, and it appears to be slowly taking effect, as there has been improvements in employment and private consumption is rising.  

The GBP/USD has been trading within a tight range, the pound hasn’t made any more gains versus the US dollar in the wake of the surprisingly hawkish BoE vote yesterday, but neither has it given up much ground.

We are expecting the Dow Jones to open 31 points higher at 21,390, and we calling the S&P 500 4 points higher at 2436.

At 1.30pm, the US will release the building permits and housing starts numbers for May, and the consensus is for a reading of 1.25 million and 1.23 million respectively. The preliminary University of Michigan consumer sentiment report will be announced at 3pm, and traders are anticipating a level of 97.2. The President of the Federal Reserve of Dallas, Robert Kaplan, will be speaking in Dallas at 5.45pm.


CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.


Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.