Today is the day that Scotland decides on its own future. The polls have been slowly tightening for a while now with one poll even suggesting that the voting will be as close as 49% yes, 51% no. We eagerly await the announcement of the result which is expected breakfast time on Friday.
The US Federal Reserve maintained its commitment to keep rates low for a “considerable time” after stopping asset buying in October. This lead to the US Equity market seeing gains as the low rate continue to support growth.
The IMF has warned that the global recovery is very precarious because of rising geopolitical tensions and tightening economic policy especially in the US. Earlier this week the Organisation for economic co-operation and development cut its forecasts for 2014 growth for all large economies except India.
Expectedly the FTSE 100 lagged behind its European peers as nervousness regarding the outcome of the Scottish referendum outcome weighed on investors minds.
Yesterday the unemployment rate within the UK fell to the lowest rate since 2008 to 6.2%. Average earnings (excluding bonuses) rose by 0.7% for May/July tear on year; including bonuses, they rose by 0.6%. This is below the current inflation rate of 1.5%.
Today we are are watching the Vote closely as this will have a huge impact on the markets. If the Scots do vote to go it alone. we expect the FTSE to fall significantly as markets have not factored it in.
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