The Fed kick started the show on Wednesday hiking rates by 0.75%, today the BoE is set to do the same. Also earnings from PayPal, Starbucks and Moderna.

The FTSE 100 is set to open lower this morning after the Chief of Federal Reserve, Jerome Powell, raised interest rates by 0.75% and indicated more raises are lined up. Sending US stocks lower.

Market analysts are calling the lead index will be down by around 45 points this morning.  

The US kick started the show yesterday, today will show whether the Bank of England will follow. The BoE is set to announce its interest rate decision at midday (12:00 GMT) with expectations of a 0.75% raise to match the Fed. Such an increase would make it the biggest since 1989 and would put its base rate at 3%, highest percentage since 2008.

However, some investors hope that the recent poor economic data may encourage a lower increase.

The Bank of England may also revise its CPI forecasts higher and cut those for GDP, having already projected that the British economy will soon tip over into a recession.  

Adding to worries of a global slowdown, China’s services activity shrank again in October. The Caixin services PMI fell to 48.4 last month, lowest since May, as Covid restrictions impacted consumption and businesses.   

Oil prices seen lower in early hours of Thursday, giving up a three-week high after the weak economic data in China points to a slowing demand.

The stronger dollar is also weighing on the oil market due to the raised interest rates from the Fed, making the commodity more expensive for foreign buyers.

Some economic data due today includes UK services activity, Eurozone unemployment rate, US initial jobs claims and US non-manufacturing PMI.

In corporate news, earnings reports include the likes of Panasonic, Starbucks, PayPal, Moderna, ConocoPhillips.

(Sources: investing.com, reuters.com)