UK markets unchanged after BoE rate hike

The Bank of England raised interest rates yesterday by half a point to 1.75%, the highest level since 2008 and the sixth consecutive rise. It has cut its growth forecasts, and now sees the economy falling into recession from Q4 2022.

Investors had anticipated a 50-bps rise, and so the FTSE 100 ended the session unchanged. The Health Care sector performed best, followed by Technology and Consumer Cyclicals.

Avast jumped 43% after the UK competition authorities gave the green light for its takeover by NortonLifeLick.

Today, UK shares opened slightly lower, weighed down by energy stocks.

Shares of advertising group WPP fell 5.3% in early trading, as investors expected more from its results, although it raised its annual net sales guidance.

All eyes today are on the U.S. jobs data, as investors look for clues whether the Fed's rate hikes are impacting the economy.

 

Things to read today:

Bank of England serves up a shock with its intensely gloomy outlook (Financial Times)

Where Does The Fed Go From Here? For Jay Powell, the Only Focus is Inflation (Businessweek)