The Bank of England takes the spotlight on Thursday with jobless claims and other earnings in focus.

U.K interest rate decision

European markets trading lower this morning as investors still trying to digest the interest rate hike set by the Fed yesterday evening. Fed has set the scene for Bank of England ahead of the meeting later today (12pm GMT), analysts expect a 75bp rise from the bank rising from 1.75% to 2.25%. The UK PM increased the spending on another energy package deal worth £40bn, which theoretically is no good for inflation. However, since the deal aims to cool down the inflation, BoE could potentially ease the rates creating a bullish opportunity for investors. Even so, this will take the rates to their highest level since 2008. 

U.S Initial Jobless Claims

Over in the US, a weekly report is due to be released today which measures the number of individuals who filed for unemployment insurance for the first time during the past week. In recent weeks the outcome of the figures has been less than the forecast, suggesting positive improvements. This is despite the aggressive interest rates imposed by the US Federal Reserve system. The data is due at 8:30 ET (13:30 GMT), with analysts expecting another low week of 218,000. This would compare with 213,000 new claims the week before.

Costco Earnings

Costco Corp is expected to post another rise in its fourth-quarter revenue, assisted by strong demand for the supermarket’s snacks, seasonal goods and fresh foods. Hence, Investors will be on the lookout for comments on gross margin pressure, supply chain disruptions and the impact of inflationary pressures on consumer spending. Many expect to see earnings per share of $4.15 on revenue of $71.6Bn and will be closely paying attesting to what the directors have to say about changes in consumer behaviour.