Markets await more stimulus from BoE and ECB

Indices across Europe are expected to open flat ahead of the anticipated moves from the ECB to cut interest rates and a further injection of QE from the Bank of England.

Investors will look to decisions this afternoon from the Bank of England, expected to expand its QE programme by as much as £75bn, and the European Central Bank, which is likely to cut the main refinancing rate from 1% to 0.75%. There was strong demand for safe-haven German debt at a bond auction yesterday, signalling investors remain worried. In the quiet market Germany sold €3.3bn euros of 5-year government bonds, receiving bids for 2.7 times the amount on offer at an average yield of just 0.52% Equity market activity was subdued, with US markets closed for the Independence Day holi...