Thanks for joining me. The Bank of England could begin cutting interest rates before the US and the eurozone in a sharp reversal of previous expectations, according to traders.
Money markets indicate that there is a 20pc chance that policymakers in Britain could announce a first interest rate cut since the pandemic in May.
Meanwhile, the chances of such a move by the US Federal Reserve and the European Central Bank (ECB) are put at around 10pc.
It comes after Govenor Andrew Bailey said last week that cuts to interest rates, which stand at 16-year highs of 5.25pc, are “on the way”.
Citigroup strategist Jamie Searle said Mr Bailey’s comments “perhaps makes May seem like a reasonable time to cut”.
At the start of the year, Britain had been expected to be slower to cut rates than the US and Europe amid persistent inflation.
5 things to start your day
1) Red tape risks ‘finishing off’ defined benefit pension schemes, MPs warn | Excessive regulation blamed for threatening last private sector final salary schemes
2) British energy production plunges to record low | UK forced to rely more than ever on imports as North Sea output declines
3) Boeing shares rise after bosses announce departure | Boeing CEO Dave Calhoun to step down in wake of 737 Max safety crisis
4) Guardian warns staff to expect job cuts within months | Media group blames ‘tough economic conditions’ as it prepares for cost-cutting measures
5) ITV’s legal bill soars to £24m amid Phillip Schofield scandal | Threefold increase in overhead comes after broadcaster spent £13m on legal settlements
What happened overnight
Asian shares were mixed in muted trading as buying in some markets was soon erased by profit-taking.
Japan’s benchmark Nikkei 225, where computer chip-related stocks had interested investors early, ended flat at 40,398.03, while the broader Topix index added 0.1pc, or 3.16 points, to 2,780.80.
Australia’s S&P/ASX 200 fell 0.4pc to 7,780.20. South Korea’s Kospi added 0.7pc to 2,756.52. Hong Kong’s Hang Seng jumped 1.4pc to 16,703.76, while the Shanghai Composite added 0.2pc to 3,031.90.
Analysts have been watching various global uncertainties, including in the Middle East and Russia, that affect energy prices as well as investor sentiments.
In energy trading, benchmark US crude fell 4 cents to $81.91 a barrel. Brent crude, the international standard, shed 6 cents to $86.69 a barrel.
An attack late last week at a concert hall in Moscow was claimed by the Islamic State group. Gaza was in focus with the UN Security Council issuing its first demand for a cease-fire. The UK backed the resolution while the US abstained, angering Israel.
