Business World

Tuesday 21 November 2017

FTSE down after Bank of England leaves rate alone

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

Sean Duffy

the FTSE 100 was down 0.27pc after Bank of England governor Mark Carney postponed a decision to lower interest rates.

The City had been anticipating that Mr Carney would lower the UK's benchmark rate to below the current level of 0.5pc. Markets had priced the likelihood of a rates change at 80pc, but Carney indicated at a briefing that the bank would most likely take action in August.

The pound gained over 2pc on the back of the announcement before retreating slightly.

In Dublin, the ISEQ Index of Irish shares rose by 1.15pc in yesterday's trading.

AIB gained 13.96pc to climb to €6.85. Bank of Ireland gained 2.2pc and is trading at 19 cent per share.

Oil and gas exploration firm Providence Resources saw its share price soar 8.96pc after the successful completion of a $70m (€62.9m) share placing was confirmed at a company EGM yesterday. Shares in Irish carrier Ryanair saw gains of 3.13pc, while shares in online booking platform Hostelworld were up 5.63pc.

On European markets, the German DAX rose 1.41pc, while the EUROSTOXX 50 Index saw gains of 1.26pc.

In the US, the Dow and the S&P500 hit new highs, spurred by strong results from JP Morgan.

On the currency markets, the pound was trading at $1.33, surging to a two-week high against the Greenback. The euro hit a nine-day peak against the dollar at $1.11 and was valued at 83 pence sterling.

The price of a barrel of crude oil eased up 1.7pc yesterday after Wednesday's losses to $45.51. Bond yields were up across the globe as investors became slightly less risk averse with the political outlook in the UK becoming a little clearer. US 10-year bonds were trading at 1.542pc.

Irish Independent

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