BOE in defensive mode, waiting for economic recovery
Today Bank of England announced that it decided to keep the interest rates steady and continued with its current level of asset investments, while traders were looking for any indications for a more moderate economic improvement.
The primary lending rate was held at 0.1%, following central bank cutting rates two times from 0.75% since the start of the coronavirus pandemic.
The Monetary Policy Committee decided collectively against lengthening its bond-buying program.
The central bank will rather wait to see the size of the foreseen increase in unemployment in the fall. The U.K. is estimated to end its furlough plan in October, which has partly subsidized payments for millions of furloughed workers throughout the outbreak of COVID-19.
Experts have advised that many of these workers are probably not going to return to the jobs market. BOE during its report today stated that the unemployment rate was predicted to increase to approximately 7.5% by the end of this year.
U.S. stock futures registered another surge
Early today futures contracts attached to the main U.S. stock indexes exchanged in the positive area. The surge came hours after the Nasdaq Composite secured its 31st record close for the year.
Dow Jones Industrial Average futures scored almost 90 points, indicating a moderately confident start for the day. S&P 500 and Nasdaq-100 futures further registered softened trades.
The moves reflected a positive trading session from yesterday, with the main indexes cleaning off a weaker-than-expected private payroll statement and the Dow growing more than 350 points.
Oil seems steady today
Oil prices remained stable, struggling to keep their positive momentum near five-month tops touched in the previous trading session. That because fuel demand concerns created by the second wave of COVID-19 infections overbalanced declines in the greenback.
U.S. West Texas Intermediate (WTI) crude futures fell 3 cents, at $42.16 a barrel while Brent crude futures increased 6 cents to $45.23.
Gold near record top
Gold prices continued constant to record tops today while a softer U.S. dollar and anticipations of more incentive means to decrease the economic fallout from the pandemic.
Spot gold remained steady at $2,039.75 per ounce after scoring an all-time high of $2,055.10 yesterday. U.S. gold futures surged 0.3% to $2,055.90.
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