Market overview: Morgan Stanley confident on Apple

1550: Analysts at Morgan Stanley reiterated their 'overweight' rating on Apple, insisting the tech giant will put its recent wobble behind and post solid growth in the second half of 2015 and in 2016. Morgan Stanley's analysts believe iPhone sales will grow approximately 3% next year, supported by continued upgrades of the installed base and "the compelling value proposition of a discounted iPhone".

1505: Across the Atlantic, the Dow Jones is down over 90 points after unemployment claims rose to a four-month high. Markets are seemingly jittery over this and other economic reports that could influence the timing of the first rate hike by the Federal Reserve. "On balance, low trend levels of initial and continuing jobless claims support our view of healthy labor markets," analysts at Barclays said in a note. "We look for non-farm payroll gains of 200k in tomorrow’s July employment report."

1430: Some broker tips are making a sizeable impact on prices include Poundland being up 2.5% after a Jefferies upgrade, Investec's upgrade of Diageo has helped lift the shares 0.9%, while Greggs is down 2% due in part to a Canaccord downgrade.

1343: Initial jobless claims in the week ended 1 August increased by 3,000 to reach 270,000, according to figures published by the Department of Labor. Economists at Barclays had been expecting a reading of 276,000.

1320: The Bank of England’s Inflation Report, which was released alongside the monthly rate decision shows officials expect annual inflation to tick back up to the 2% target by the third quarter of 2017 if interest rates rise in line with market expectations. The Bank said it now expects the UK economy to grow by 2.8% this year, up from a previous forecast of 2.5%. It also said wages will rise 3% this year, which is a faster rate than had been expected in May, and 3.75% next year.

1212: The Bank of England has decided to keep interest rates unchanged at 0.5%, as expected by analysts, but the central bank’s meeting minutes showed one member of the Monetary Policy Committee voted in favour of an increase. Some economists see the BoE raising rates early next year while some see an increase as soon as November. However, Governor Carney has assured that hikes would be in small increments. Investors are now turning to the BoE’s Inflation Report at 1245 BST which may provide further insight on the policymakers’ next move.

1005: UK industrial production dropped 0.4% in June compared to a month ago, missing expectations for a 0.1% rise. Year-on-year output increased 1.5% in June, below forecasts for a 2.2% gain. Manufacturing production rose 0.2% month-on-month and 0.5% year-on-year in June, short of analysts’ projections of 0.1% and 0.4% growth respectively.

0930: The headline Markit Eurozone retail purchasing managers’ index, which tracks month-on-month changes in like-for-like retail sales across the bloc’s biggest three economies, rose to 54.2 from 50.4 in June. Sales were also up versus July of last year, with the annual rate of growth the fastest on record since May 2008, Markit said.

0905: The FTSE 100 is down 0.33% so far, with traders seeming to be sitting on their hands (possibly at home or after running, walking or catching the bus due to the London tube strike) as the market prepares for the first ever Bank of England 'Super Thursday', which will see interest rate decision, meeting minutes and Inflation Report all released at once. Analysts expect the central bank’s Monetary Policy Committee will keep interest rates unchanged at 0.5% as inflation remains weak. UK consumer prices were flat in June compared to a year ago as oil prices declined and the stronger pound hurt trade. “Although another no-change decision is likely, we expect the minutes to reveal that at least two of the nine Committee members have begun to vote to raise rates,” according to Capital Economics analysts. “We would, however, caution against placing much weight on the minutes until the Governor has commented at the subsequent Inflation Report press conference at 12.45 BST.”

0845: The FTSE 350 is down as we approach the end of the first hour of trading on Thursday. BP is a drag as it, and others, go ex-dividend. At the other end, Cobham is so far topping the risers after reiterating its full year guidance on top of robust interims, with Randgold also higher after its quarterly profits.

0815: German factory orders smashed forecasts as they rose 2.0% month on month in June, well above the consensus estimate for 0.3%. The quarterly growth rate is now running at 3.1%, the strongest since March 2011. Economists at BNP Paribas noted that much of the strength is coming from the external side with foreign capital goods orders rising by 8.1% quarterly and foreign consumer goods orders up 4.9%. "Capital goods orders to the eurozone are rising at 11.9% quarterly, the third strongest reading since at least 2003. The figures fit with the strengthening of German exports in recent months and suggest investment will be a driver of eurozone growth in the near term."