Bank of England expected to continue stimulus program, keep rates unchanged despite rising inflation
Major stock markets in Asia closed mixed on Wednesday, while Europe turned lower before the Bank of England’s decision despite two indices hitting new record highs.
Asia Dow, which includes blue-chip companies in the region, rose 9 points, or 0.23%, to close at 3,880.
Tokyo’s Nikkei 225 stock exchange, climbed 144, or 0.52%, to 27,728 points.
Hang Seng, the benchmark for blue-chip stocks trading on the Hong Kong stock exchange, decreased 221.86 points, or 0.84%, to 26,205, while China’s Shanghai stock exchange was down 10.67, or 0.31%, to 3,466 points.
On Wednesday, three stock markets recovered from their losses in the previous session to end higher, except Japan, as they posted gains between 0.46% and 0.88%.
In Europe, major indices saw increases earlier with STOXX Europe and CAC 40 renewing their records, but later some indices turned lower before the Bank of England’s (BoE) critical interest rate decision at 1100GMT.
Although the central bank is expected to continue its stimulus program and keep the interest rate unchanged despite rising inflation, experts believe the bank would raise its inflation forecasts.
STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 European countries, was up 0.33% to 469.75 points at 1024GMT. The French stock market, CAC 40, stood at 6,777 with a 0.46% gain. Both indexes hit their all-time highs earlier in the session with 470.23 and 6,785.92 points, respectively.
London’s FTSE 100 and Spain’s IBEX 35 turned negative to 7,123 and 8,780 points, respectively.
While Germany’s DAX 30 was up 0.12% to 15,711 at that time, Italy’s Borsa Italiana FTSE MIB 30 gained 0.15% to 25,528.
European indices closed Wednesday higher with technology stocks seeing a 20-year high.