There was breaking news this morning after Barclays and four former executives were charged with fraud regarding their actions during the height of the 2008 global financial crisis. This is the first time criminal charges relating to the financial crisis have been brought against a bank in the UK. The case relates to money raised from Qatari investors to help avoid a government bailout. Barclays shares closed 1.9% lower.
Following the Bank of England’s vote to hold interest rates last week, decided by a surprise 5-3 vote, BoE Governor Mark Carney has declared the time is not right for a rate hike. He cited a mix of Brexit uncertainty and wage growth as two reasons that made a rate rise improbable for the minute. The pound reacted poorly to the comments and fell 0.6% against the euro & 0.45% against the dollar, with the currency slipping further through the day. Currently at $1.2625 & €1.1347
Just before the London close news broke that suggested talks between the Conservatives and DUP party weren’t going as expected. But this does suggest the DUP aren’t going to be taken for granted. The partnership is crucial after the Conservatives failed to win a majority we’d expect more news on this overnight.
The FTSE was fairly flat this morning, receiving a small boost from a weaker pound on the back of Carney’s comments. At lunch the index sat 0.15% higher before tumbling on the afternoon to a 0.68% loss. This came as oil prices plummeted below $46 p/bbl. Asian bourses closed higher with the Nikkei climbing over 1% during the session, likely taking momentum from Europe and US markets yesterday and therefore will likely endure a tough session if things stay as they are today. As futures indicated, US shares opened marginally lower, paring back gains for equities in Europe. The Dow Jones is flat after closing at a record high yesterday, with the NASDAQ currently 0.4% lower.