| Prior Close | ||
|---|---|---|
| Asset | Level | Days Change |
| S&P 500 | 6,845.50 | 0.00% |
| FTSE 100 | 9,951.14 | +0.20% |
| UK Natural Gas | 3.69 | 0.00% |
| 2 Year Gilt | 3.74 | +0 bps |
| 10 Year Gilt | 4.54 | +0 bps |
| GBP/USD | 1.346 | -0.07% |
| GBP/EUR | 1.15 | +0.20% |
| GBP/JPY | 210.61 | 0.00% |
| Brent Oil | 60.85 | 0.00% |
| Gold ($) | 4,325.60 | 0.00% |
| Bitcoin ($) | 89,738.65 | -0.24% |
| Data | Prior | Cons | Actual |
|---|---|---|---|
| No events available | |||
| Data | Prior | Cons | Time |
|---|---|---|---|
| BoE Consumer Credit | 1.1m | - | 09:30 |
| Mortgage Approvals | 65,020 | 64,500 | 09:30 |
| Mortgage Lending Level | 4.3m | 4.8m | 09:30 |
Markets traded calmly with FTSE 100 up 0.20% to close at 9951.14, reflecting subdued investor activity following the New Year's holiday. Gilt yields held steady, with 2-year at 3.74% and 10-year at 4.54%, as no major UK data or BoE speeches emerged. Sterling edged lower against the dollar by 0.07% to 1.346, while remaining flat against the euro and yen. Commodities showed minimal movement, with Brent oil at 60.85 and gold at 4325.60, amid global supply dynamics.
UK BoE Consumer Credit data at 09:30 is expected to reveal lending trends, with prior at £1.12 billion potentially signaling consumer spending resilience. Mortgage Approvals at 09:30, forecasted at 64,500, may gauge housing market health amid affordability pressures. Mortgage Lending Level at 09:30, consensus at £4.8 billion, could influence Gilt yields if it surprises on the upside.
UK disposable income faces a "growth crawl" with forecasts of just 0.2% rise in 2026, amid tax hikes and labor market weakening. Brexit impacts persist, with unresolved trade frictions risking export demand slowdowns.
US-Venezuela tensions trigger oil price volatility, with potential US investment in Venezuelan reserves adding supply upside but short-term disruptions. These developments underscore global geopolitical risks that may pressure UK energy costs and Sterling stability.
In the rate cutting cycle, recent data on labor market softening supports fewer cuts in 2026, favoring a slower pace to avoid overheating. Markets price around three cuts by year-end, down from prior expectations, as unemployment rises toward 5.2%. MPC's unanimous recent vote tilts neutral, with data dependence key for potential pauses if inflation stabilizes. Dovish tone prevails amid global deflationary pressures, but hawkish elements monitor for reversals if growth accelerates.