The Bank of England left its benchmark interest rate unchanged at 3.75% in June, maintaining its cautious stance amid ongoing uncertainty surrounding inflationary pressures linked to recent geopolitical developments.

The central bank’s Monetary Policy Committee voted 7-2 in favour of keeping rates on hold.

External MPC member Megan Greene and Chief Economist Huw Pill dissented, calling for a quarter-percentage-point increase in rates.

The majority maintains an ‘active hold’ stance

Despite the split vote, most MPC members appeared reluctant to move towards a tighter monetary policy.

Their position remained broadly aligned with Governor Andrew Bailey’s “active hold” approach, which he has previously described as an effective form of tightening when compared with market expectations for rate cuts before the outbreak of the US-Iran conflict.

The BoE’s decision stands in contrast to recent moves by other major central banks.

The European Central Bank and the Bank of Japan have both raised interest rates over the past week.

Meanwhile, projections released following the first policy meeting under new US Federal Reserve Chair Kevin Warsh indicated that policymakers expect rates to increase later this year.

Energy market developments offer some relief

Ahead of the June policy meeting, a tentative truce between the United States and Iran raised hopes that the Strait of Hormuz could reopen fully, potentially easing pressure on global energy markets and lowering oil prices.

Such a development would be particularly beneficial for Britain, which relies heavily on imported natural gas.

However, the BoE signalled that it remains cautious about declaring victory over inflation.

“Whatever happens in the future, the higher energy prices of the past four months mean there’s already some inflationary pressure in the pipeline,” Andrew John Bailey, governor of BoE said in a statement accompanying Thursday’s policy decision.

Inflation forecast remains above target

The central bank expects inflation to rise above 3.25% during the final quarter of the year, compared with 2.8% recorded in May.

However, the projected increase is less severe than the 3.6%-3.7% range outlined in two of the BoE’s three primary scenarios published in April.

Inflation has remained above the BoE’s 2% target for much of the past five years, driven by a series of economic shocks since the COVID-19 pandemic.

Among the most significant was Russia’s invasion of Ukraine in 2022, which pushed British inflation above 11%.

Growth outlook improves marginally

Alongside its inflation assessment, the BoE struck a slightly more optimistic tone on economic growth.

The central bank estimated that the economy is expanding at an underlying pace of 0.2% per quarter, an improvement from the 0.1% rate projected in its previous forecasts.

This assessment came despite a modest decline in output during April.

The latest decision underscores the BoE’s balancing act as policymakers weigh lingering inflation risks against a still-fragile economic recovery, while keeping a close watch on developments in global energy markets.

The post Bank of England holds rates at 3.75% as inflation risks persist appeared first on Invezz

Pi Network’s PI token is trading around $0.1300 on Thursday, down by 1% in the last 24 hours as the broader cryptocurrency market struggled to sustain a recovery.

The token remains under pressure as recurring spikes in long liquidations and cautious investor sentiment weigh on the market. 

Technically, PI risks invalidating a recent bullish breakout from a long-term descending trendline if selling pressure continues.

Market sentiment remains fragile

The broader crypto market has lost momentum, with Bitcoin (BTC) slipping back below the $65,000 mark amid concerns over a more hawkish monetary policy stance from the US Federal Reserve under its new leadership.

Investor confidence has also weakened. Data from CoinMarketCap shows the Fear and Greed Index fell to 21 on Thursday, down from 25 on Monday, bringing sentiment closer to the Extreme Fear zone.

Meanwhile, derivatives data continues to favor bears. According to CoinGlass, approximately $311 million in long positions were liquidated on Wednesday, significantly higher than the $129 million in short liquidations, highlighting continued downside pressure across the market.

Pi Network technical outlook: PI risks losing breakout momentum

The PI/USD 4-hour chart remains bullish and efficient despite the slight retracement.

The rebound briefly pushed above a key descending trendline near $0.1300, a level that had previously rejected multiple recovery attempts. 

However, the latest pullback suggests bulls may be struggling to maintain control.

A daily close below $0.1300 could invalidate the breakout and reinforce the prevailing bearish trend.

Momentum indicators continue to paint a cautious picture for PI.

The Moving Average Convergence Divergence (MACD) histogram remains above the zero line but continues to contract, while the signal lines are approaching a potential bearish crossover.

This suggests that buying momentum is weakening.

Meanwhile, the Relative Strength Index (RSI) hovers near 50. The reading indicates subdued demand and a lack of strong bullish conviction.

Together, these indicators suggest the recent recovery may lack the strength needed to develop into a sustained uptrend.

If sellers push PI below the critical $0.1300 level, the token could revisit the lower support zone at $0.1186, with another demand zone at $0.1000. 

A break below these levels could expose PI to further downside pressure.

For bulls to regain momentum, PI will need to overcome several technical hurdles.

The first major resistance stands at $0.1471, with another hurdle at $0.1606. 

A sustained move above these resistance levels would improve the technical outlook and increase the chances of a broader recovery.

While the token recently broke above a long-standing descending trendline, weakening momentum indicators and fragile market sentiment suggest bears are regaining control.

Unless buyers defend the current support zone and push the price above key moving averages, PI could face renewed pressure toward $0.1186 and potentially the $0.1000 level in the sessions ahead.

The post PI slips toward key support as bearish momentum builds appeared first on Invezz

Shares of consulting and technology services giant Accenture plunged 14% in premarket trading on Thursday after the company lowered the top end of its annual revenue growth forecast, underscoring concerns that businesses remain cautious about spending on discretionary technology projects.

The company now expects annual revenue growth of 3% to 4%, compared with its earlier forecast of 3% to 5%.

It also projected fourth-quarter revenue of between $17.75 billion and $18.4 billion, below analysts’ expectations of $18.47 billion, according to data compiled by LSEG.

The reduced outlook overshadowed better-than-expected quarterly earnings and a series of acquisitions aimed at expanding Accenture’s cybersecurity capabilities.

Quarterly earnings beat expectations

For the three months ended May 31, Accenture reported net income of $2.34 billion, up from $2.2 billion a year earlier.

Quarterly earnings rose to $3.80 per share, exceeding analysts’ estimates of $3.71 per share, according to FactSet.

Revenue increased 5.6% to $18.72 billion, although it narrowly missed Wall Street expectations of $18.78 billion.

The company also raised the lower end of its adjusted earnings forecast and now expects annual earnings of $13.78 to $13.90 per share, compared with prior guidance of $13.65 to $13.90.

However, new bookings slipped to $19.3 billion from $19.7 billion a year ago, indicating softer demand conditions.

Cybersecurity push gathers pace

Accenture also announced a significant expansion of its cybersecurity business through acquisitions valued at a combined $4.18 billion.

The company said it would acquire a majority stake in industrial cybersecurity firm Dragos, and fully purchase asset intelligence company runZero and device security specialist Netrise.

The acquisitions are expected to close in August or September, subject to regulatory approvals.

The deals will add companies with combined annual recurring revenue of $208 million and strengthen Accenture’s cybersecurity division, which already generates about $10 billion in annual revenue.

The new assets are expected to broaden Accenture’s offerings in protecting industrial operations and critical infrastructure, including power grids, factories, pipelines and data centers, amid growing concerns about AI-driven cyber threats and geopolitical risks.

The announcement follows acquisitions of Alfahealth and Industries eXcellence Group that were unveiled earlier this week.

Spending concerns weigh on sentiment

Despite its acquisition push, Accenture entered its earnings report facing growing investor skepticism.

Morgan Stanley downgraded the stock to Equal-Weight from Overweight earlier this week, saying massive investments in artificial intelligence were diverting resources away from traditional information technology services.

“We are not seeing the budget growth inflection we had previously expected,” the bank’s analysts wrote.

Accenture derives roughly half of its revenue from consulting services, a business that has come under pressure as corporate clients continue to constrain technology spending.

Analysts have also questioned whether Accenture’s recent acquisitions, which are increasingly product-oriented rather than service-based, can deliver meaningful revenue contributions.

The current interest-rate environment has added another layer of pressure.

Morgan Stanley described it as a “neutral to negative signal,” arguing that stable rates offer little support for technology budgets while any future increases could further tighten corporate spending.

Jefferies analyst Surinder Thind also raised concerns earlier this year, saying he had seen no evidence of a recovery in customer demand despite management’s optimistic commentary.

Thursday’s sharp share decline suggests investors remain focused on slowing enterprise technology spending and weakening demand trends, even as Accenture bets heavily on cybersecurity and artificial intelligence-related opportunities.

The post Accenture sinks 14% as lowered outlook clouds earnings beat and cybersecurity deals appeared first on Invezz

The number of Americans filing new applications for unemployment benefits fell last week, indicating that layoffs remain low and that the US labour market continues to show resilience despite broader economic uncertainties.

Initial claims for state unemployment benefits dropped by 4,000 to a seasonally adjusted 226,000 for the week ended June 13, the Labor Department said on Thursday.

Economists polled by Reuters had forecast 225,000 claims.

Although claims have recently moved toward the upper end of their 190,000 to 230,000 range for this year, the labor market has regained momentum after a shaky performance in 2025.

The economy has posted three consecutive months of solid job growth, while the unemployment rate has remained unchanged at 4.3% for the past three months.

Seasonal factors may be influencing claims

Economists noted that unemployment claims often rise at the beginning of summer as some states allow non-teaching school employees to file for benefits during the long holiday period, a Reuters report said.

Seasonal adjustment models used by the government do not always fully account for these fluctuations, contributing to week-to-week volatility in claims data.

The latest claims figures covered the period during which the government surveyed employers for the nonfarm payrolls component of June’s employment report.

US employers added 172,000 jobs in May, extending a run of healthy hiring that has been supported in part by low levels of layoffs.

Fed sees labor market remaining stable

The labor market’s resilience was also highlighted by the Federal Reserve in its policy statement on Wednesday.

The central bank noted that job gains have kept pace with workforce growth and that the unemployment rate has changed little in recent months.

The Federal Reserve kept its benchmark overnight interest rate unchanged at a range of 3.50% to 3.75%, though updated projections showed policymakers expected borrowing costs to rise this year amid concerns over inflation.

Fed Chair Kevin Warsh said policymakers broadly viewed the labor market as stable.

“Thought that the labor markets were stable,” Warsh told reporters, adding that “there were some people around the committee who thought that it was trending better than that.”

“I’d say the jobs data has been moving in a good direction,” he added.

Hiring remains a weak spot

Despite the low level of layoffs, economists say uncertainty surrounding trade policy and geopolitical tensions, including the conflict in the Middle East, continues to weigh on hiring decisions.

Continuing claims, which reflect the number of people receiving unemployment benefits after an initial week of aid, rose by 24,000 to a seasonally adjusted 1.81 million during the week ended June 6.

The data lags initial claims by one week.

The increase in continuing claims suggests that while companies are not cutting jobs aggressively, unemployed workers are finding it more difficult to secure new positions.

Government data released earlier this month showed the median duration of unemployment rose to 11.6 weeks in May from 11 weeks in April, marking the longest period of joblessness since November 2021.

The divergence between low layoffs and rising continuing claims points to a labor market that remains fundamentally healthy but is becoming increasingly challenging for job seekers trying to re-enter the workforce.

The post US jobless claims fall to 226,000 as layoffs remain low, labor market stays resilient appeared first on Invezz

US stocks opened higher on Thursday as investors looked to recover from the previous session’s selloff, with optimism surrounding a temporary US-Iran peace agreement helping offset concerns about a more hawkish Federal Reserve under new Chair Kevin Warsh.

The Dow Jones Industrial Average rose about 349 points, or 0.68%, while the S&P 500 gained 1.03%. Nasdaq Composite climbed 1.18%, led by strength in semiconductor stocks.

The rebound followed Wednesday’s sharp market decline after Federal Reserve officials left interest rates unchanged but indicated that additional rate hikes may still be necessary to contain inflation.

Investors weigh Fed outlook and policy uncertainty

Financial markets reassessed the path of monetary policy after the Federal Reserve’s first meeting under Warsh’s leadership.

The central bank held its benchmark interest rate steady, but policymakers’ projections suggested a more hawkish stance than investors had anticipated.

Nine of 18 officials now expect interest rates to increase in 2026, while Warsh declined to submit his own rate forecast.

Market expectations for further tightening increased sharply.

According to CME Group’s FedWatch tool, investors are now pricing in a 50% probability of a quarter-point rate increase in September, up from 27% on Wednesday.

Analysts said the combination of leadership changes and diverging views among policymakers may keep the Federal Reserve on hold for an extended period.

Middle East optimism and lower oil prices support sentiment

Despite concerns about monetary policy, investor sentiment improved as oil prices fell to their lowest levels in more than three months, raising hopes that inflation pressures could ease without requiring further rate increases.

The United States and Iran also released the text of an interim agreement signed by both presidents.

The agreement extends the ceasefire reached in April by another 60 days, providing additional time for negotiations toward a final peace deal.

Markets have largely recovered from the weakness seen earlier in June, supported by a resilient US economy, a broadening rally beyond technology stocks, and optimism surrounding diplomatic progress in the Middle East.

Recent economic data also reinforced confidence in the economy.

Data released on Wednesday showed that US retail sales increased more than expected in May, with consumers purchasing more automobiles and other goods despite higher gasoline prices.

Semiconductor stocks lead gains

Technology and semiconductor shares led Thursday’s advance.

Intel shares rose more than10% in trading after President Donald Trump said Apple had agreed to work with the company on designing and manufacturing chips in the United States.

Other chipmakers also moved higher. Nvidia gained more than 1.2%, while Micron Technology and Marvell Technology advanced more than 5%.

The iShares Semiconductor ETF rose more than 4.6%.

Elsewhere, shares of Rumble jumped 13% after the company rebranded as RUM Group and completed its acquisition of German AI cloud company Northern Data.

Smith & Wesson gained more than 23% after reporting higher fourth-quarter sales.

Accenture moved sharply lower, falling more than 15% after trimming the upper end of its annual revenue forecast and announcing plans to acquire a majority stake in Dragos and fully acquire runZero and NetRise in a combined deal valued at $4.18 billion.

Investors were also preparing for the quarterly expiration of stock options, index options, and futures contracts, commonly known as “triple witching,” an event that can increase trading volumes and market volatility.

The post Dow opens 349 points higher as chip stocks rally on Iran deal optimism appeared first on Invezz