U.S. Stocks Rise Despite BOE Deciding To Not Lower Rates

U.S. stock indexes rose in early trading on Thursday despite a surprising decision from the Bank of England to not lower interest rates.

During its monetary policy summary, England’s central bank decided to maintain its main interest rate at 0.5 percent but hinted that an interest rate cut was on the horizon at its policy meeting next month.

“The MPC is committed to taking whatever action is needed to support growth and to return inflation to the target over an appropriate horizon.  To that end, most members of the Committee expect monetary policy to be loosened in August” the policy statement reads.

In the aftermath of the U.K’s June 23rd Brexit vote, Bank of England Governor Mark Carney said that further stimulus measures may soon be needed for the U.K. and suggested in a speech that some monetary policy easing will be required over the summer.

U.S. Inflation

Today the Bureau of Labor Statistics reported that the Producer Price Index (PPI) increased 0.5 percent in June, beating than the 0.3 percent consensus increase from briefing.com.  Core PPI rose 0.4 percent in June,  beating the 0.1 percent consensus estimate.

Presidential Elections

New general election polls released today have mixed results about which presidential candidate is leading.

A new Rasmussen report today shows Trump with a +7 lead while an Economist/YouGov poll shows Clinton with a +2 advantage.  A CBS News/New York Times poll shows a tie for the 2 candidates.

Donald Trump is expected to announce his VP pick before the week-end.

Written by:

Johnathan Schweitzer




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