On Thursday, the FTSE 100 index fell 0.2%, or 11.17 points, to 7,516.50 as the London stock market awaited the European Central Bank’s (ECB) decision on interest rate cuts and inflation statistics., which will be announced This afternoon, 1315GMT.
Across channels, the CAC 40 fell by 0.1%, while Frankfurt’s DAX 40 also fell by 0.2%. Adding to the market turmoil, the British pound also fell overnight, opening at $1.2722 this morning from $1.2744 at market close on Wednesday. The euro fell from $1.0904 to $1.0888.
ECB President Christine Lagarde has signaled a rate cut in the second quarter of 2024, but market sentiment remains hopeful of a March rate cut, despite Lagarde firmly denying this deadline.
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As well as the ECB talks, US economic growth data will also be released at 1500 GMT this afternoon, with Bureau of Economic Analysis domestic growth statistics forecasting US economic growth of 2.0% in the fourth quarter of 2023. While this figure is satisfactory, it is still below the 4.9% growth she recorded in the third quarter of last year.
