Markets end the day with gains as focus shifts towards the US Federal Reserve's decision
The Bank of Canada has made a move to lower its key interest rate, cutting it by 25 basis points to 2.5%. This decision, announced yesterday, has sent ripples through the financial markets, with stock prices in London closing higher on Wednesday as a result. The FTSE 100 index closed up 0.1%, the FTSE 250 ended up 0.6%, and the AIM All-Share closed up 0.5%.
Across the Atlantic, the United States Federal Reserve (Fed) is expected to follow suit, with an anticipated 25 basis points cut on Thursday. This move is aimed at easing monetary policy and supporting economic growth amidst ongoing uncertainties.
In the UK, the Bank of England's interest rate decision will be the focus on Thursday's economic calendar. Meanwhile, several companies are set to release significant updates. Next has its half-year earnings scheduled, while Auto Trader and Foresight Environmental Infrastructure are both holding their annual general meetings.
Elsewhere, Barratt Redrow, a leading housebuilder, reported an adjusted pretax profit of £591.6 million. Games Workshop, a fantasy game figurine maker and retailer, declared a dividend of 85 pence.
In the real estate sector, PRS REIT has entered into non-binding heads of terms to sell its operating subsidiary. Renishaw is scheduled to release its full-year results on Thursday.
The housing market in the US saw a slight dip in August, with privately-owned housing starts at a seasonally adjusted annual rate of 1.31 million, down 8.5% from July. Similarly, privately-owned housing units authorized by building permits decreased by 3.7% to a seasonally adjusted annual rate of 1.31 million.
In foreign exchange markets, the pound was quoted higher at 1.3661 dollars against the US dollar at the time of the London equities close on Wednesday.
Looking at the US, stocks in New York were mixed: the Dow Jones Industrial Average was up 0.7%, the S&P 500 index down 0.1%, and the Nasdaq Composite down 0.5%. The yields on the US 10-year and 30-year Treasuries narrowed to 4.04% and 4.64% respectively.
As the global financial landscape continues to evolve, these developments serve as key markers in the ongoing narrative. Stay tuned for more updates as they unfold.
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