Market overview: MPC votes 8-1 to keep rates unchanged

LONDON (ShareCast) - (ShareCast News) - 1205: The Monetary Policy Committee kept Bank Rate unchanged at 0.50% and the size of its asset purchase facility at £375bn, both as expected by analysts.

0935: UK house prices rose 2.7% in August compared to a month ago, the biggest monthly rise since May last year, Halifax reveals. It (Other OTC: ITGL - news) beat analysts' forecasts for a 0.5% increase and showed improvement on the previous month's 0.4% drop. On a year-on-year basis, prices jumped 9% in the three months to August, smashing estimates for a 7.9% gain and following July's 7.8% rise.

0900: "China's inflation may have increased to 2%, but that is due to the increasing expense of food rather than any economic improvement; the country's producer price index, meanwhile, saw its worst drop in six years as it fell by 5.9%, adding yet another number to the tower of troublesome data coming from China," said Connor Campbell, financial analyst at Spreadex. China's 2% CPI (Other OTC: CPICQ - news) increase in August followed a 1.6% rise a month earlier, beating forecasts for a 1.8% gain. The PPI's 5.9% fall in August was more than the 5.6% decline expected and July's 5.4% drop.

0837: Morrison shares are the bottom of the pile in the early going following weaker than expected first half same store sales figures. Stock in Glencore (Xetra: A1JAGV - news) is also down. After Wednesday's close S&P reaffirmed the company's long-term debt rating but its negative outlook on the same as well, "reflecting our view that industry prospects remain uncertain". Next (Other OTC: NXGPF - news) and Dixon's Carphone are at the top of the leaderboard following the release of their latest financials. As regards the economic backdrop, the focus will be on the result of today's MPC (KOSDAQ: 050540.KQ - news) meeting and minutes. FTSE 100 down 59.12 points to 6,161.76.