Investor sentiment was holding a cautious tone for much of yesterday. Equity markets largely traded sideways. At the close last night on Wall Street, the S&P 500 was down modestly (-0.4%).

The action on currency markets saw sterling come under some downward pressure in the second half of European trading. There was no clear cut factor behind its decline. However, the softer tone to sterling did coincide with comments from the Chancellor of the Exchequer in relation to his support for the BoE’s QE programme…………

(Click PDF image to download full Morning Comment with rates and graphs)