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Business news: Investors await policy meets of central banks

By Jenny McCall

11:44, 14 December 2021

A picture of BT Corporate Office- British telecommunications and IT services company
Patrick Drahi increases his stake in BT to 18%, triggering a warning from Britain – Photo: Shutterstock

Key points

  • The Bank of England has offered a glimmer of hope for the UK economy that it is continuing to recover from the pandemic and threats to financial stability are at “pre-Covid levels. Despite risks from global debt, the challenge was no greater than in February 2020, says the central bank.
  • The Federal Reserve (FED) will commence its meeting today to discuss monetary policy and all eyes are on whether it will raise interest rates.
  • Alongside the Fed, other central banks will meet this week to discuss monetary policy.
  • The UK jobs market has rebounded, with the number of employees rising by 0.9% month-on-month in November.
  • Billionaire and BT’s biggest shareholder Patrick Drahi announced today that he increased his stake in BT (BT) to 18%, triggering a warning from Britain, which said it would intervene if necessary to protect the telecom group.

Business and economic news

  • Poundland strikes gold: Pepco Group (PCO) reported a 46% jump in its 2020-21 core profit when it released its full-year results on Tuesday. The discount retailer, which owns brands in the UK such as Poundland said the growth reflected new store openings amid the easing of lockdown restrictions.
  • Travis Perkins saw its stock price rise during early trading today after announcing it was extending its £100m ($132m) share buyback programme by a further £70m.

Markets

Stocks: Britain’s FTSE 100 (FTSE) index opened higher on Tuesday with futures up 0.49%.

Oil: Oil prices dipped towards $74 a barrel today after the International Energy Agency (IEA) said that the new Omicron variant was set to dent the global demand recovery while supplies were set to increase next year.

Gold: Gold eased on Tuesday ahead of a Federal Reserve meeting. Investors wait to see if the Fed will ease its pandemic support.

Forex: The dollar steadied today, ahead of the Fed starting its two-day monetary policy meeting later on today.

AUD/USD_zero

0.66 Price
-0.710% 1D Chg, %
Long position overnight fee -0.0066%
Short position overnight fee -0.0016%
Overnight fee time 21:00 (UTC)
Spread 0.00006

USD/JPY

156.91 Price
-0.370% 1D Chg, %
Long position overnight fee 0.0108%
Short position overnight fee -0.0190%
Overnight fee time 21:00 (UTC)
Spread 0.010

EUR/USD

1.09 Price
-0.030% 1D Chg, %
Long position overnight fee -0.0087%
Short position overnight fee 0.0005%
Overnight fee time 21:00 (UTC)
Spread 0.00006

GBP/USD

1.29 Price
+0.070% 1D Chg, %
Long position overnight fee -0.0046%
Short position overnight fee -0.0036%
Overnight fee time 21:00 (UTC)
Spread 0.00013

Crypto: Ethereum was down 5.27% today in morning trade and Bitcoin also dropped 2.96% today.

Things to watch this week

This week, the central banks in the eurozone, UK, US and Japan – all meet to discuss their updated monetary policies. 

Read more: UK unemployment rate falls by 0.9% to 4.2%

Markets in this article

TPK
Travis Perkins
9.39 USD
0.31 +3.430%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

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