Market overview: Homebuilders lead bounce after Carney's remarks

1630:Close The Footsie finished higher, led by Glencore and shares of homebuilders. The latter got a boost from dovish remarks from Carney. His words sent the pound promptly lower and lit a fire under the shares of housebuilders. After the close of trading RBS pushed back its forecast for the date of the first interest rate hike from August 2016 to February 2017. In parallel, Barclays would trim its own projections for CPI in 2016 and 2017. Unfortunately, the IMF also marked down its projections for global GDP growth this year (although estimates for the UK were left unchanged). Stock in the commodity trader was quite volatile on Tuesday, with trading in its shares having been halted at one point in the session. To take note of, cable finished below its May 2010 lows.

1515: Barclays has reportedly attracted the interest of Spain’s Santander and US private equity group Apollo, as it looks to offload its credit card operations in Spain and Portugal. Reuters cited sources as saying the bank was putting its Spanish and Portuguese Barclaycard operations up for sale and has solicited non-binding offers for the combined group ahead of a January 19 deadline, hoping to finalise a deal by the end of March.

1313: Cable dips below 2010 lows in intra-day trading after Carney's speech.

1312: To take note of, strategists at JP Morgan reportedly lowered their forecasts for benchmark two and ten year US Treasury note yields by 30 basis points each to 1.45% and 2.45%, respectively. Analysts at the broker said they now only expected the Fed to raise three times in 2016, versus a prior forecast for four rate hikes.

1224: Global growth, profit and liquidity expectations are at their worst level since summer 2012, according the Bank of America Merrill Lynch Fund Manager Survey for January. The banks said asset allocators have moved out of stocks, into cash and bonds, with cash levels up to 5.4% from 5.2% last month, their third highest since 2009. Still, investors “have not capitulated and are not max bearish”, with just 12% reckoning a recession will occur in the next 12 months.

1156: Trading in shares of Glencore has been halted.

1156: Bank of America has reported fourth quarter earnings per share of 28 cents in revenues of $19.5bn.

1157: Morgan Stanley reports $7.74bn in sales for 39 cents in EPS.

1149: China's PBoC has reportedly provided 410bn yuan of liquidity to banks via a medium-term facility.

1147: Short positioning in Eur and CAD remains at two standard deviations, UBS says, whereas overall short positioning in the broker's aggregate US Treasury measure rose last week and is now at over three standard deviations stretched from its historical context. The gain in the latter was driven mainly by increases in shorts on 2 and 10-year contracts.

1142: The market is too bearish on Burberry, UBS says today.

1141: Analysts at Barclays are telling clients they feel confident about the dividend payouts at Lloyds and reasonably so in the case of HSBC.

1021: IMF cuts global GDP forecasts for this year and next by two tenths of a percentage point each to 3.4% and 3.6%. Estimates for the rate of expansion in the UK were left unchanged for both years at 2.2%.

1000: German investor confidence came in a little better than expected for January, according to the latest survey from the ZEW Center For European Economic Research in Mannheim. The index of investor and analyst expectations fell by 5.9 points to 10.2 in January, following two consecutive increases. Still, the reading was ahead of economists’ expectations for 8.2.

0930: Core CPI in the UK advanced at a 1.4% year-on-year pace in December (consensus: 1.2%), pushing the pound higher. "With lags in the transmission mechanism for monetary policy meaning that the MPC will want to tighten before core inflation has returned to 2%, we continue to think a rate increase could come much sooner than markets expect," says Samuel Tombs, chief UK economist at Pantheon Macroeconomics.

0915: The oil market faces a third successive year when supply will exceed demand by 1m barrels a day, the rich world’s oil watchdog, the IEA, said on Tuesday.

0907: Stocks have jumped out of the gate. Overnight, the MPC’s newest recruit Gertjan Vlieghe sounded a very cautious note on the pace of rate rises in the UK, apparently putting quite a bit of emphasis on recent demographic trends. Like so many developed and developing nations, the UK’s birth rate is below the so-called the ‘replacement rate’. It’s the first rate-setter we see mention the topic. Nonetheless, what is in theory moving markets on Tuesday morning are the less weak than feared Chinese data released overnight. In any case, a quick analysis by Google would probably throw up fewer references to user searches for “yuan fix” this morning. Analysts appear to have forgotten the subject, at least for today. Carney is due to make a speech at noon. Oil and copper futures are pushing higher early on. Bank of America and Morgan Stanley are set to publish their latest results later in the day. FTSE 100 up 81.33 points to 5,870.13.