European Indices Trade with Negative Bias ahead of BOE Policy Update

European Indices Trade with Negative Bias ahead of BOE Policy Update

12 May 2016, 11:30
Roberto Jacobs
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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.


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