European Indices Trade with Negative Bias ahead of BOE Policy Update
European indices opened lower on Thursday before turning flat as
investors waited for the Bank of England's monetary policy decision and
its updated outlook on inflation and economy from its latest Quarterly
Inflation Report.
In early trade, the FTSE 100 lost 0.3% to trade at 6,145. Other major
European indices, including German DAX 30 and French CAC 40 are trading
flat, with slight negative bias. European indices took cues from
downbeat Asian markets on Thursday and overnight weakness in the US
equity market. Even buoyant oil prices failed to boost sentiment as weak
corporate earnings continue to weigh.
BOE eyed for further cues
The Bank of England is set to announce its monetary policy decision
along with the meeting minutes and quarterly inflation report. Following
the releases, the BOE Governor Mark Carney is expected to speak about
the inflation report.
The current meeting would be central bank’s last meeting before the June
23 referendum and hence, the central bank is expected to stand pat and
hold its key interest rate at 0.5% and asset purchase program at 375
billion Pounds.
Today's inflation report and BoE Governor Carney's comments will be
closely scrutinized and is likely to infuse fresh bout of volatility
across European markets.
