London pre-open: Stocks to fall after BoJ policy shift
Sharecast
Published Dec 20, 2022 07:28
Updated Dec 20, 2022 07:40
London pre-open: Stocks to fall after BoJ policy shift
Sharecast - The FTSE 100 was called to open 60 points lower at 7,301.
CMC Markets analyst Michael Hewson said: "Asia markets have also plunged after this morning’s surprise move by the Bank of Japan to tweak its monetary policy settings by widening the band on its yield curve control policy by 25bps.
"Even before this morning’s events it seemed improbable given the uncertain rate backdrop that we were likely to get any sort of so-called Santa rally this late in the day. The reality is that anyone who’s made any money this year will be content to hang onto their winnings, while the rest are unlikely to want to compound their 2022 misery with more potential losses.
"Consequently, we can expect to see European markets open sharply lower in the wake of this morning surprise move by the Bank of Japan to tweak its yield curve control settings."
In corporate news, international distribution group Bunzl (LON:BNZL) said it was selling its UK healthcare division to Mediq and buying four other businesses.
The transactions are expected to be profit neutral to the group and will generate a small cash inflow. No financial details were disclosed.
Elsewhere, Irn Bru maker AG Barr said it has bought the remaining 38.2% stake in Moma Foods from founder Tom Mercer and the other minority shareholders for £3.4m.
The company already owned a 61.8% stake in the plant-based milk business, which it bought in December 2021. At the time, AG Barr entered into an option deed with Mercer and the other shareholders which gave it an agreed path to full ownership in the following three years.
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