Market Update

Posted on 29 October 2008 by Drew

Be the first to comment

Growing expectations of a rate cut by the Fed saw the markets have a better day yesterday. The UK, along with other European shares, have risen sharply in early trading,  fueled by growing expectations of imminent rates cuts by the Bank Of England and the ECB.

Nikkei  - (up 7.7%) on the back hopes of a rate cut both domestically & in the US.
Hang Seng  - (up 0.84%)  
Sydney - (Up 1.34%)
Dow Jones (up 10.88%)
The FTSE is up  191.49 so far this morning.
 
The result of the Fed's meeting will be announced later today, but a 0.5% reduction to 1% is the predicted outcome.
 
Hungary becomes the latest country to receive international assistance, with a rescue package by the IMF, the EU and the World Bank  totalling $25billion (£15.6billion). It follows similar measures taken by the IMF to prop up the economies of Ukraine and Iceland. They are also in talks with Pakistan and Belarus.
 
The FSA has said that the number of  repossessions has climbed sharply, with the no. of cases in the second quarter of the year 11,054, up 71% compared with a year earlier.  The number of borrowers who have fallen into arrears for at least three months has also been rising and cases are up 16% on a year ago.   
 
The Bank Of England has revealed that the number of mortgages approved for house purchases rose for the first time in a year, with 33,000 home loans  approved in September, a rise of 1,000 compared with the record low of the previous month.
 
JP Morgan has suggested that the Bank Rate could fall as low as 1.25%.
 
Swaps didn't do a lot yesterday (again). Overnight Libor slipped by 3bps and the mighty 3 Months Libor came down by 2bps as more tracker margins are increased.

Post a Comment

Please keep your comments relevant. Charcol reserves the right to edit or delete comments.

The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and neither John Charcol nor Drew Wotherspoon will accept liability for them.

Terms & conditions

Your initial mortgage consultation is obligation free. There will be a minimum fee for our mortgage service of £450, of which £150 is payable when you apply, and we will retain the commission from the mortgage lender. Alternatively, you can choose the fee only option which is typically 0.65% of the amount borrowed. The precise amount will depend on your circumstances and mortgage loan amount, and will be discussed and agreed before you make a mortgage application.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT

Legals

John Charcol is a trading style of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority; our registration number is 147692. John Charcol Associates LLP is an appointed representative of Towergate Financial (West) Ltd, which is authorised and regulated by the Financial Services Authority.  Registered office: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent ME14 3EN. Registered in England No: 02292688.  This mortgage site is only directed at persons within the UK.   The FSA does not regulate some investment mortgage contracts.  Calls may be recorded for training and monitoring. Max call charge from a BT landline is 3.9p per minute. Calls from other networks may vary.