Market updates on August 20
Pay attention to the news from the UK and Italy
British economy speeds up, increasing chance of rate lift
In June, Britain's large services industry managed to ascend at its fastest tempo since October. That’s what a poll disclosed on Wednesday. It helped market participants to lift bets that the Bank of England is going to have interest rates increased already next month.
After a dismal first four months of this year, the IHS Markit/CIPS services Purchasing Managers' Index managed to tack on to 55.1 in June, thus confounding experts’ average estimates in a Reuters survey of 54.0, intact from May's outcome.
This week June polls for the smaller manufacturing as well as construction sectors surpassed hopes too.
Meanwhile, the major UK currency edged up. As for UK government bond yields, they soared because financial markets priced in a greater likelihood that the Bank of England is going to have interest rates lifted to 0.75% from 0.5% - the reading they have stood at for nearly the whole past decade.
Britain’s key financial institution delayed a highly anticipated rate lift in May after the UK economy speeded down more than predicted for the three months to March, partly because of unexpectedly harsh winter weather.
It’s apparent that high inflation as well as ongoing deep uncertainty as for the terms of the UK’s departure from the European bloc in March next year have heavily suppressed surge.
Additionally, in May the major bank also told that in the event of a recovery, interest rates would likely to ascend for only the second time for more than a decade as a gradual drift away from the emergency stimulus initiative it rolled out during the meltdown.
The Bank of England has predicted a 0.4% GDP surge for the second quarter Besides this, it also expects inflation to speed up soon because of soaring crude.
Similar
5 important events this week will bring us!
Let's consider the key events for this week's trading
Market updates on August 19
There were no major moves during the Asian trading session, however we have some events today, which may affect the sentiment in the market.
Latest news
Bitcoin dives 14%, slumping below $5,000
On Tuesday, crypto assets dived, with Bitcoin decreasing below the psychologically crucial $5,000 mark for the first time this year…
British inflation tacks on for the first time this year
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
Market updates on June 18
Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.
Deposit with your local payment systems
