Europe To Open Higher As BoE To Pump In £150 Billion & Biden Edges Ahead
Fiona Cincotta November 5, 2020 7:35 AM
BoE injects £150 billion & markets applaud election outcome (so far)

European stocks are looking to open broadly higher on Thursday after Wall surged overnight, even though the winner of the US Presidential election has yet to be declared and it could still be days until the winner is announced. Joe Biden has 264 electoral college votes versus Trump’s 214. However, Trump has requested recounts in several states and threatens legal action yet the US stock market surged.
Stocks on the FTSE are being supported after the Bank of England announced that it will pump an additional £150 billion into the economy as the UK goes into lockdown.
The central bank voted unanimously to keep rates on hold at 0.1%. The central bank also increased its QE programme by £150bln, more than the £100 billion expected. The pound breathed a sigh of relief; early morning rumours had suggested that the BoE was going to cut rates which had sent the Pound sharply lower.
FOMC no change expected
Looking Ahead the Federal Reserve interest rate announcement is due later today. This is unlikely to have much impact on the market, which remains heavily focused on the race to the White House. The data from the US over the past month has been resilient despite record numbers of new covid infections. The markets have been broadly steady and there is little reason for the Fed to make a move this month. US interest rates are expected to remain at these levels for the next few years and the Fed could well reiterate that message.
FTSE Chart
The FTSE is trading +0.5% and has pushed over its 200 sma on the 4 hour chart. It is targeting its descending trendline resistance at 5940, a move above here could negate the current bearish trend bringing 6000 round number into focus.
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