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Ftse up following boe rate hike

written by Bella Palmer

London’s benchmark index rose 0.7%, while the CAC advanced 0.9%, and the DAX was 0.7% higher

The FTSE 100 pushed higher on Friday as traders digested the Bank of England’s (BoE) interest rate rise to 3%, and a warning that Britain faces its longest recession since the 1920s.

London’s benchmark index rose 0.7% after opening, while the CAC advanced 0.9% in Paris, and the DAX was 0.7% higher in Frankfurt.

On Thursday, the BoE raised the UK interest rates by 75 basis points, its biggest hike in 33 years. The hike will push up mortgage bills for millions of people in the coming months.

Michael Hewson of CMC Markets said: The key message was that rates were unlikely to go anywhere near as high as markets were pricing, with the central bank keen to blame the recent mini-budget for the fact that the outlook was so gloomy, and that they were doing their best to try and keep rates as low as possible.

News in the eurozone revealed that German industrial orders declined more than expected in September, adding to fears that Europe’s largest economy is sliding into recession.

The data showed that new factory orders fell by 4.0% month-on-month, including a 7% tumble in foreign orders. Analysts had expected a much smaller fall, to 0.5%.

On Wall Street, S&P 500 futures were up 0.4%, Dow futures gained 0.3%, and Nasdaq futures were 0.4% higher as trade began in Europe.

It comes as workers at Twitter are suing Elon Musk after the billionaire started mass sacking across the social media company just a week after acquiring it.

Employees have filed a class-action lawsuit against the firm, saying the lack of notice is in violation of federal and state law.

Meanwhile, the latest US jobs report will be closely watched by investors on Friday, for any signs that America’s employment market is weakening.

Economists predict around 200,000 new jobs were created in October, down from 263,000 in September. A slowdown in hiring, and wage growth, could be a signal that the high inflation gripping the US economy might soon begin to ease.


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