Britain's main stock indexes are lower on Thursday as investors position for the Bank of England's policy decision and digest a hawkish signal from the U.S. Federal Reserve. Financials, miners and housebuilders are among the biggest drags, while a handful of company-specific gainers limit broader losses.
Highlights
- FTSE 100 falls 0.94% to 10,410.01 and FTSE 250 drops 0.63% by 10:16 GMT as markets price in prolonged high rates ahead of Bank of England decision.
- Financial and materials sectors lead declines, with London Stock Exchange down 3.5%, 3i Group off 4.3%, and precious metal miners falling 5% as a group.
- Tesco slips 2.2% after weak sales growth, Persimmon drops 6.4% among homebuilders, while BP and Shell lose 1.5% each amid multi-month oil price lows.
Market moves before central bank decisions
As reported by Reuters, the Bank of England is widely expected to keep rates unchanged at 3.75% later on Thursday, a day after the U.S. Federal Reserve left its own rates steady. Still, nine Fed policymakers expect a rate increase this year, keeping inflation concerns and the interest-rate outlook in focus for equity investors.By 10:16 GMT, the FTSE 100 is down 0.94% at 10,410.01 points, while the FTSE 250 is off 0.63%. The decline is led by financial and materials shares as markets weigh the implications of tighter-for-longer monetary policy on growth-sensitive sectors.
Among financials, London Stock Exchange drops 3.5% after Rothschild Redburn cuts the stock to "neutral", while investment firm 3i Group loses 4.3%. Precious metal miners fall 5% as a group, with Fresnillo down 5.8% and Hochschild Mining down 7%.
Company updates and sector pressure
Tesco slips 2.2% after reporting slower first-quarter sales growth, adding to a weaker tone in consumer-linked names. Rate-sensitive homebuilders shed 2.6%, with Persimmon falling 6.4%, the steepest decline among blue-chip stocks.Not all stocks are lower. Intertek gains 1.5% after the testing and certification company agrees to a takeover by Swedish private equity firm EQT, while Informa rises 2.3% after projecting stronger growth in 2027.
Energy stocks also weigh on the market, with BP and Shell both down 1.5% as oil prices touch their lowest level since the start of the Iran war. The sector moves underline how commodity weakness is adding to pressure on the wider UK market.
Our earlier coverage of the Bank of England’s expected hold at 3.75% outlined how policymakers were balancing easing UK inflation against the risk that renewed energy-price pressures could reignite second-round effects. We also noted that shifting rate expectations were influencing market pricing, with attention on any MPC dissent and the implications for the pound and broader UK assets.
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