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European equities in the red as Central Banks take center stage.



The Pound rallied on hawkish BOE statement.

The Pound rallied on hawkish BOE statement.

European stocks are mostly down this morning in a big day for Central Bank rate decisions and statements.

The Swiss National Bank left rates unchanged however they still believe that the Franc is overvalued. This pushed the USD/CHF higher to 0.9676.

The Bank of England also kept rates on hold at 0.25%, as expected. However, they did acknowledge that growing inflationary will likely see an increase in rates in coming months. The Pound rocketed on the news, and is sitting just below it’s post Brexit high of 1.3330 at the time of writing.

The Nikkei was softer, down -0.31% gain, while Chinese indices were all in the red following less than impressive data from the country.

Europe is looking a little red, lead by the FTSE 100 -0.80%, the DAX -0.23%, and the Euro Stoxx 50 -0.24%. Talk of higher rates is driving equities slightly lower, although it’s hardly a massive selloff right now.

S&P futures are pointing towards a slightly lower open, down -0.08% after making yet another record high yesterday. It’s likely that we will see another record close today.

Crude oil continues to rally following yesterdays inventory numbers and a report by the EIA predicting an increase in demand. WTI is up 0.97% and is sitting just below the $50 mark.

Today’s calendar:

8.30am: Core CPR (MoM) for August.

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