European markets trade higher
Critical European markets (DBEU) were mostly trading higher on May 12, 2016. The rise was after the release of the United Kingdom’s monetary policy release. The BoE (Bank of England) unanimously decided to keep rates unchanged at the record low.
Specifically, the SPDR Euro Stoxx 50 ETF (FEZ) was trading 0.83% higher at 8:00 AM EST. The German DAX and French CAC 40 were also trading with a positive bias. They rose by 0.48% and 0.93%, respectively.
Non-Eurozone markets were also trading with a positive bias. The United Kingdom’s (FKU) FTSE 100 was trading 0.50% higher. Sweden’s (EWD) OMX Stockholm 30 rose by 0.36%. The Russian (RSX) index MICEX was among the major indexes that posted the least gains. It had a slight rise of 0.10%.
BoE keeps rates unchanged and warns of Brexit
BoE governor Mark Carney conveyed the monetary policy committee’s decision to keep the official bank rate unchanged at 0.5%. The asset purchase program quantity also remained unchanged at 375 billion pounds. The BoE also warned Markets of a possible fall in jobs, rise in prices, and fall in the pound if there’s a vote for the United Kingdom to leave the European Union. The growth forecast for 2017 and 2018 was lowered to 2.3%.
European industrial production figures are low
The Eurozone industrial production numbers for March were published on May 12, 2016, by Eurostat. Industrial production fell by 0.8%—compared to the forecast of a 0.1% rise. The fall in industrial production was primarily attributed to the fall in production of non-durable consumer goods by 1.9%. Capital goods also fell by 1.1%. Looking at the performance of member countries, the largest decrease was registered in Ireland and Lithuania. Their industrial production fell by 11.2% and 3.5%, respectively.