The main European stock indices closed higher that day. Indices are encouraged by weaker than expected UK CPI inflation data today. This is causing traders to lower their expectations for the BOE rate hike tomorrow. Expectations are now 50-50 for a rate hike.
The final figures show:
- German DaX +110.66 points or 0.71%
- Frances CAC +50.01 points or 0.69%
- British FTSE 100 +76.43.4 +1.00%
- Spanish Ibex +124.28 points or +1.30%
- Italian FTSE MIB +501 points or +1.75%
UK 10-year yields are trading -12 basis points lower at 4.22%, while German 10-year yields are down around 5 basis points at 2.70%.
In the foreign exchange market, the AUD and NZD remain the strongest of the major currencies, while the USD is now the weakest, just ahead of the GBP.