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Five things you need to know to start your day

Here's what's moving markets.

Article originally published by Bloomberg. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Good morning. We’re awash with central bank decisions, oil markets are calming down and the U.K. Supreme Court remains the focus of Brexit. Here’s what’s moving markets.

BoE Decision 

We’ll get the latest Bank of England interest rate decision later, the last one scheduled before the U.K.’s current Oct. 31 Brexit deadline. It comes after data yesterday showed U.K. inflation fell to its lowest rate since the end of 2016, below the BoE target rate, apparently driven down by the price of computer games and clothing. That’ll give Mark Carney more time to think about the implications of Brexit, and someone is stacking bets that a hard exit will make the BoE slash rates in the coming months. Here’s a decision day guide. 

Fed’s Hawkish Cut

Federal Reserve policy makers lowered their main interest rate for a second time this year, but the dollar gained as Chairman Jerome Powell said that “moderate” policy moves should be sufficient to sustain the U.S. expansion, hurting hopes among some for deeper cuts. Needless to say Trump wasn’t pleased. “No guts, no sense, no vision!,” he said of Powell on Twitter. The Bank for International Settlements, a.k.a the “central banks’ central bank,” reckons fears of a global recession might be overdone.

Oil Markets Relax

The oil market’s looking a whole lot calmer now. Crude held its decline overnight, up about 6% for the week, following supply assurances from Saudi Arabia and the International Energy Agency. The damaged Abqaiq oil facility is now operating at around 40% of its pre-attack levels and output should be fully restored by the end of the month, according to Saudi Aramco Chief Executive Officer Amin Nasser. Meanwhile, IEA Executive Director Fatih Birol said the global oil market remains well supplied with ample stockpiles. 

Pound, Repos Eyed

Elsewhere in markets overnight, Australia’s dollar slumped after the unemployment rate rose, while U.S. stock futures retreated and Hong Kong shares fell as investors took note of the Fed. The pound is steady and hasn’t shown much of a reaction to Supreme Court judges’ deliberations, as they continue to narrow the British government’s room to maneuver on the second day of hearings in a landmark legal challenge to Prime Minister Boris Johnson’s suspension of Parliament. Meanwhile, investors betting yields long-term bonds will rise may have helped fuel the recent surge in repo rates, according to one money manager.

Coming Up...

It’s not just the Bank of England providing rate decisions, we’ll also get them from Switzerland, South Africa and Norway, and that’s after the Bank of Japan left its monetary stimulus unchanged overnight. Elsewhere, growth in U.K. retail sales is expected to have slowed from a year earlier, and watch out for earnings from British high street bellwether Next Plc and Germany’s Rocket Internet SE for tech. 


©2019 Bloomberg L.P. This article was written by Joe Easton from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Article originally published by Bloomberg. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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