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FTSE 100 closed in the red after Carney rate cut warning

by LLB Reporter
27th Jun 19 10:52 am

On Wednesday the FTSE 100 closed marginally in the red following a warning of a possible no-deal Brexit rate cut from the Bank of England governor Mark Carney.

There has been increased uncertainty for businesses affecting business investment and now there is  an increasing possibility of a no-deal Brexit under Boris Johnson along with Carney’s rate warning.

On Wednesday, London’s top flight closed down by 6.04 points at 7,416.39, although UK markets were steady ahead of the G20 summit on Friday.

The pound was flat at 1.269 vs the US dollar which declined by 0.10% to 1.115 against the Euro, whilst the French Cac fell by 0.25% and the German Dac rose by 0.14%.

Fiona Cincotta, senior market analyst at City Index said, “The pound remains firmly below 1.27 US dollars, spooked not only by Boris Johnson’s do-or-die Brexit attitude, but also by the Bank of England (BoE) threat of a potential rate cut in the case of a no-deal Brexit.

“Currently the BoE has a smooth Brexit with a deal as a base case scenario. Recognition by BoE governor Mark Carney that the assumption might have to be changed has unnerved pound traders.”

The largest fallers on the FTSE 100 were Rolls Royce which was down by 24p at 850.2p, Micro Focus was down by 43p at 2,055.5p, Fresnillo down by 18.2p at 874.8p and Schroders was up 57p at 3,016p.

The FTSE 100 biggest risers were Evraz, up 25.4p at 664.4p, IAG, up 9.9p at 449.4p, Carnival, up 63p at 3,475p, and Barclays, up 2.4p at 149,3p

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