London Stocks Open Flat Amid Interest Rate Worries
Investors Weigh Prospect of Higher Rates Against Potential for Economic Slowdown
London stocks opened flat on Thursday, as investors weighed the prospect of higher interest rates against the potential for a slowdown in economic growth.
The FTSE 100 index was down 0.1% in early trading, while the domestically focused FTSE 250 index was up 0.1%.
Investors are looking ahead to the release of Bank of England Governor Andrew Bailey’s speech later in the day, which is expected to provide more clues on the central bank’s plans for raising interest rates.
The Bank of England is widely expected to raise interest rates by 0.25 percentage points at its next meeting in May, which would take the Bank Rate to 1%.
However, some investors believe that the Bank of England may need to raise interest rates more aggressively in order to combat inflation, which is at a 30-year high.
The prospect of higher interest rates is weighing on stock markets, as it is likely to lead to slower economic growth.
“The prospect of higher interest rates is weighing on stock markets, as it is likely to lead to slower economic growth,” said Michael Hewson, chief market analyst at CMC Markets.
Technical Analysis
The FTSE 100 index is currently in a range between 7,300 and 7,500 points. If the index breaks below 7,300 points, it could fall to 7,200 points. However, if the index breaks above 7,500 points, it could rise to 7,600 points.
The FTSE 250 index is currently in a range between 20,000 and 21,000 points. If the index breaks below 20,000 points, it could fall to 19,500 points. However, if the index breaks above 21,000 points, it could rise to 22,000 points.
