Top 5 Things to Know in the Market on Thursday

Here are the top five financial market highlights for Thursday, August 4:

1. Bank of England Likely to Cut Rates to New Low

The Bank of England (BoE) is set to announce its monetary policy decision at 11:00 AM GMT (7:00 AM ET). Analysts anticipate a 25 basis point cut in interest rates, bringing them to a new record low, while the total for quantitative easing is expected to remain unchanged. Some analysts, including those from JP Morgan, predict that the BoE could potentially lower rates to zero, while others, such as BayernLB and Julius Baer, believe the bank may maintain current levels. Additionally, there are suggestions for increases to the asset purchase program, leaving room for unexpected developments.

2. Pound Weakens Amid Rate Cut Expectations

The British pound is under pressure as investors remain cautious ahead of the BoE’s monetary policy decision. During European morning trading, the currency dipped to 1.3279 before consolidating at around 1.3295, reflecting a loss of 0.22%. Reports indicate that speculators are holding record short positions on the pound, potentially setting the stage for further volatility.

3. Weekly Jobless Claims to Illuminate Labor Market

Following Wednesday’s key labor data and prior to the upcoming jobless claims report, investors are looking ahead to the release scheduled for 12:30 PM GMT (8:30 AM ET) to assess the state of the U.S. labor market. Market participants will also focus on the June JOLTS data set to be released at 2:00 PM GMT (10:00 AM ET).

4. Profit-Taking in Oil After Recent Gains

Oil prices experienced a pullback after surging more than 3% overnight on easing concerns regarding a global supply glut. As of 9:57 AM GMT (5:57 AM ET), crude oil prices fell 0.49% to $40.63 while Brent crude dropped 0.88% to $42.72.

5. Global Stocks Climb with BoE Decision Awaited

Global stock markets are experiencing gains as investors look forward to the BoE’s potential rate move, which would mark the first adjustment since March 2009. U.S. futures indicate a mixed start as equities continue to trade within a narrow range. By 9:58 AM GMT (5:58 AM ET), the blue-chip index rose by 10 points (0.05%), while another index edged up by 1 point (0.03%), contrasted by a slight decline in one other index, down 6 points (0.12%).