EWU Rises as Bank of England Holds Firm on Interest Rates
BoE decision to keep interest rates at 0.5%
The BoE (Bank of England) remains unperturbed by the current events on the international and domestic fronts when it comes to its plans for interest rate changes. At its recent September 2015 meeting, the MPC (Monetary Policy Committee) voted to hold interest rates at 0.5%.
This firm decision by the MPC strengthened the pound sterling against the euro and the US dollar. The iShares MSCI United Kingdom ETF (EWU) consequently rose by 0.89% on September 10, showing the UK government’s confidence in its economy.
The graph below shows the ups and downs in the movement of the EWU over 2H15, owing to the volatile environment so far.
Key stocks of the day
The top three stocks of EWU on Thursday, September 10, 2015, were Ashtead Group (AHT), Inmarsat (ISAT), and Dixons Carphone (DC), whose stocks returned 2.78%, 2.44%, and 1.81%, respectively.
Ashtead Group’s (AHT) stock rating was upgraded to “buy” by Beaufort Securities and Berenberg Bank. The stock traded above its 100-day, 50-day, and 20-day moving averages. Ashtead Group now has 14 “buy” recommendations, three “hold” recommendations, and one “sell’ recommendation.
The stocks at the bottom on September 10, 2015, were Tullow Oil (TLW), Petrofac (PFC), and Glencore (GLEN). Tullow Oil has been suffering the continual impact of falling oil prices for some time now.
InterContinental Hotels Group’s (IHG) stock gained 0.72% on the day, while BP’s (BP), HSBC Holdings’ (HSBC), and Unilever’s (UL) stock fell by 2.10%, 2.64%, and 2.25%, respectively, on September 10, 2015.
For further information on equity markets, visit our page “Equity Markets Tend to Decline in September.”