Markets cautious ahead of BoE and ECB announcements

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The markets are trading slightly higher in early trading this morning, very cautious at the moment ahead of policy decisions from the European Central Bank and Bank of England.

The markets are rebounding from heavy losses yesterday over worries for Europe. With Wall Street on vacation for Independence Day, this will likely keep traders on edge.

The FTSE rose 10 – 11 points to 1161, having been hit by debt concerns for Greece and Portugal and the political unrest in Egypt. This was likely cap upside momentum.

There is positivity for Taylor Wimpy as it’s up 3.5% from an increase in earnings after significant improvement in the housing market. For today focus will be on rate decisions and statements from the European Central Bank and Bank of England. Although no policy changes are expected, traders will look for any sign to help calm the markets.

There will be a lot of patience for tomorrow when Wall Street reopens. We have the US non-farm payrolls at 1.30pm in the afternoon.

Mark Carney will chair his first meeting of the Bank of England monetary policy committee, which reports at 12noon today.

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