Investors are awaiting the Bank of England policy decision at midday, which is largely expected to be the first major central bank to rate hikes. Markets  have already fully priced an increase in the Bank Rate of between 0.1% to 0.25%, so any announcement in this direction is not expected to have a strong impact on the FTSE 100.

In the US, the Fed announced yesterday that it is starting to reduce its purchases of U.S. Treasury bonds, which currently reach $120 billion per month. But for the time being, it is ruling out raising interest rates.

Securities purchases will be reduced to $105 billion in November, to $90 billion in December, and are expected to fall to zero in June 2022. The Fed says it will adjust according to economic circumstances.

Today, BT Group is among the best performers, after it confirmed its guidance for the full year despite recording a 3% decline in half-year revenues.

British supermarket chain Sainsbury exceeded forecasts with a 23% first-half profit rise due to stronger-than-expected grocery sales. The group maintained its full-year profit outlook.

 

Things to read:

Jay Powell urges patient approach to rate rises as taper begins (Financial Times)

The Electric Vehicle Supply Chain Has a Dirty Secret (Bloomberg)

Credit Suisse Revamps Business in Post-Archegos Overhaul (WSJ)