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HL commentary as it happens
Thursday 18th June
Bank of England holds rates at 3.75%.
The Bank of England has opted to stick with the interest rate at 3.75% - where it’s sat since December. Two MPC members voted for a rate rise, pointing to ongoing inflation pressures.
Tuesday 16th June
Oil steadies, deal still uncertain
Oil prices have steadied in the low $80s, but the market is not treating the reported US-Iran deal as done and dusted just yet. The proposed agreement could reopen the Strait of Hormuz, a vital route for around a fifth of global oil flows, and President Trump has said oil should begin moving freely again once the deal takes effect. But with the details still unpublished and the formal signing not expected until Friday, investors are understandably a little cautious.
Markets reset after relief rally
Global stock markets look set for a more settled session today, with futures pointing to a return to something closer to normal after yesterday’s relief rally. The FTSE 100 had a mixed day, held back by its heavy weighting toward energy as oil prices fell sharply and dragged on the likes of Shell and BP. Across the pond, Wall Street was in a much brighter mood, with new highs for some indices as investors cheered the combination of lower oil prices, less pressure on inflation and a reduced risk of further rate hikes following President Trump’s US-Iran deal. Tech was the clear winner, as growth stocks benefited from a backdrop that suddenly looks a little less hostile, though the rally's durability still depends on the deal holding together.