Financial and Markets Update – 24th July 2024 – World of Auctions Update
Welcome to the latest financial and markets update. This blog post provides a comprehensive overview of the current economic landscape, including key interest rates, precious metal prices, government bond yields, and exchange rates. Let’s dive into the details.
Bank of England Base Rate
The Bank of England’s Monetary Policy Committee (MPC) has maintained the base rate at 5.25% as of their latest meeting in June 2024. This decision was made with a majority vote of 8-1, reflecting a finely balanced stance on monetary policy. The base rate has been at this level since August 2023, marking a 16-year high. Traders are now anticipating a potential rate cut in August, with money market pricing indicating a nearly 50% chance of this occurring.

USA Federal Reserve Base Rate
The Federal Reserve has delayed its rate-cutting pathway, maintaining a cautious approach to monetary policy. The next interest rate decision is scheduled for July 30-31, 2024, which will provide further insights into the Fed’s stance on interest rates. which currently stands at 5.25 to 5.50%
European Central Bank Base Rate
The European Central Bank (ECB) has increased its inflation forecasts for the rest of the year, indicating a more hawkish stance compared to other central banks. This suggests that the ECB may continue to maintain or even raise its base rate to combat inflationary pressures. which current stands at 3.75% for deposits
Current Gold and Silver Prices
As of July 2024, the current gold price is delivering returns akin to a risk asset, pricing in the market today is £59.71 per gram while its traditional appeal remains intact. The latest data shows that gold prices are benefiting from near-term political uncertainty. Similarly, the current silver price has seen a technical deterioration, reflecting market volatility and today offers £0.72 per gram
UK Government Gilts and Bonds
The current best price of UK government gilts and bonds, in terms of the highest yield return, is always difficult to research in the provided sources. However, it continues to be a vital indicator against other stronger yielding, but less stable assets such as property, real estate and indeed auction trading. there fore can often be seen as a key benchmark by many industry professionals. Currently the highest yield offered by government in the UK is circa 2.75%. The Bank of England’s base rate decisions and market expectations for future rate cuts will significantly influence gilt yields.
Worldwide Exchange Rates
Dollar to Pound
The British pound has extended losses against the U.S. dollar, trading at $1.267 as of June 2024. This reflects ongoing market adjustments to interest rate expectations and economic data.
Pound to Euro
The current exchange rate of the pound to the euro is 1.19. However, the broader economic context and central bank policies will continue to influence this exchange rate.
Yen to Dollar
The value of the Japanese yen has plummeted to its lowest level against the dollar in 38 years, reflecting significant currency depreciation. currently standing at 155 Yen to the US Dollar
Latest FTSE Shares News
The FTSE 100 index has experienced fluctuations, with recent data showing a lower close as investors watch for market cues. Shares in Deliveroo have seen a boost following reports of takeover interest from US rival Door Dash. Today’s FTSE Index shows 8167
Latest Wall Street News
US stocks have slipped, with the S&P 500 to 17,997 and Nasdaq snapping a three-day losing streak. This reflects broader market volatility and investor sentiment in response to economic data and central bank policies.
Stay tuned for more updates as we continue to monitor these key financial indicators and market trends. worldofauctions.co.uk/blog/