UK stocks higher ahead of June rate decision

Global market sentiment improved on Monday and stocks bounced back strongly after last week's losses. Concerns that the Fed will raise rates sooner than previously expected and start withdrawing stimulus seem to have receded.

UK stocks higher ahead of June rate decision

UK stocks are slightly higher this morning ahead of the Bank of England’s latest interest rate decision. It is anticipated the BoE will keep monetary policy unchanged but investors will be looking for clues re economic outlook and the stance on inflation which rose to 2.1% in May, its highest level in nearly two years.

On Wednesday US Treasury Secretary Janet Yellen warned that the US would face a new financial crisis if Congress did not raise federal debt limits. She called for new legislation before the end of July to allow the Treasury to continue borrowing. “.. I would really urge prompt action on raising the limit or suspending it.”

US jobless claims data is due later today as are the results of the Fed’s annual bank stress test.

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