CFD Traders Diary
Jitters ahead of today’s interest rate decision
6/3/2008
It was a much better day in London yesterday with several stocks seeing impulsive looking moves within various cyclical sectors. It would seem that whilst there are profit warnings appearing, the general tone of results recently reported has been of satisfactory progress in profits and earnings, but there is an understandable caution on the immediate outlook.
Today though we await the lunchtime interest rate decision by the MPC, and the feeling so far is that rates will be left unchanged although any accompanying comments will be examined closely. Traders are not hanging around though, and we have seen an early spate of selling with the FTSE 100 index down around 38 points mid-morning, around half of yesterday's gains
In terms of results, there has been little of note so far, and shares in Taylor Wimpey were little changed after it reported a loss before tax for the year of £19.5m on the impact of exceptional items, particularly land and work in progress write downs in the US. As expected, it continues to anticipate a more difficult trading environment in the UK but the tone of the statement was not overly bearish.
