Matt Buckland Although Quotations

With the rate verdict due later, there's a cautious mood creeping into equity markets as although a 25-basis-point hike is widely expected, there's little consensus as to just how long the aggressive stance over interest rates will now continue for.

The fact that we're approaching the end of the quarter is being seen as a key driver here, although a generally buoyant mood amongst equities in Japan and much of Europe appears to be providing some support here too.

There's some concern that although inflationary pressures do appear to have receded in recent days, higher fuel prices could reignite worries here and this in turn has the potential to weigh on stocks across the board.

Although the London index may have closed just slightly below these levels, with the overall mood for equities remaining positive, expectations are now for the market to hold onto these gains in early trade.