Britain's FTSE 100 dips marginally ahead of BoE rate decision
Feb 5 (Reuters) - British stocks were set to fall for the third straight session on Wednesday, as a stronger pound put pressure on the export-heavy index, while caution prevailed ahead of the Bank of England's rate decision.
The FTSE 100 (.FTSE), opens new tab edged marginally lower at 8,565.73 by 10:05 GMT, while the domestically focussed mid-cap FTSE 250 (.FTMC), opens new tab lost 0.3%. Both indexes were set to fall for a third straight session.
A domestically stronger currency , which rose 0.3% to approach a near one-month high, weighed on the export-heavy FTSE 100 index.
Keeping losses in check was the healthcare sector (.FTNMX201030), opens new tab that rose 1.1%, boosted by a 5.5% gain in GSK (GSK.L), opens new tab after the drugmaker posted a better-than-expected fourth-quarter result.
Meanwhile, precious metal miners (.FTNMX551030), opens new tab was the top sectoral gainer, rising 2.5%, as gold prices jumped 1% to a record high.
Ferrexpo (FXPO.L), opens new tab extended losses from the prior session, down 8.6%, as the miner on Tuesday said a civil claim worth 157 billion hryvnias ($3.77 billion) was filed against its Ukrainian unit.
Grainger (GRI.L), opens new tab on the other hand, gained 3.8% after the provider of private rental homes posted a 15% growth in total net rental income for the four-month period to January end.
On the macro front, the Bank of England's monetary policy committee is set to convene on Thursday to take a call on interest rates, with markets having fully priced in a 25-basis-point cut.
"We expect the BoE to cut rates by 25bp and easing guidance will be strengthened relative to market expectations. At least one 25bp cut per quarter should be in play as growth risks remain heavily to the downside," said Geoff Yu, senior market strategist at BNY.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Glasgow Times
3 hours ago
- Glasgow Times
Nexus Packaging expands Glasgow site with fresh investment
Nexus Packaging has announced the second phase of expansion at its advanced blow moulding site, which is part of its broader mission to innovate, boost energy efficiency, and nurture new talent within the UK's blow moulding industry. The 57,000 sq ft site, which opened in 2024, boasts nine all-electric Magic blow moulding machines, alongside state-of-the-art compressors, chillers, blending systems, and solar panels. (Image: Supplied) Chris Wagner, the director, said: "We're now moving into the next phase of development, with plans to build an additional 20,000 sq ft of storage and install four new machines. "These will be largely dedicated to custom tool designs, giving us greater flexibility and speed in servicing our clients. Read more: Further man arrested in Glasgow amid suspected 'gang war' Eddie Lyons Jnr on holiday with golf club from near Glasgow when killed in Spain Police staff could strike in row over 'huge cuts' "The West of Scotland has a proud legacy of skilled engineering. "We've been able to recruit a strong team of young technicians and machine operators, many of whom are working alongside experienced moulders from our original 1990s plant who've returned to support this new chapter." Nexus believes this blend of fresh talent and seasoned expertise provides a distinct advantage in an industry where many competitors rely on dated operations and infrastructure. Mr Wagner said: "Modern blow moulding machinery now runs via touch screen interfaces. "To get the best out of this technology, you need fresh minds and modern thinking." He remains committed to revitalising the UK's manufacturing base. Mr Wagner said: "Over the last 25 years, a lack of investment in people and machinery has shifted much industrial blow moulding production overseas. "We're working hard to reverse that trend to bring jobs, innovation, and pride back to British manufacturing."
South Wales Argus
4 hours ago
- South Wales Argus
LTA announces commitment to equal prize money by 2029
For the first time this year, all the LTA's grass court events will feature both men and women's tennis as part of a commitment to give British fans the opportunity to watch the best players, men and women, on home soil and bring women's tennis to a larger audience. The HSBC Championship at Queen's Club will stage a women's WTA 500 and a men's ATP 500 event, whilst the Lexus Eastbourne Open will stage a women's WTA 250 and a men's ATP 250, both tour events of the same level. This year, the events will be providing not just the same experience for fans and players, but a move to true equal prize money over time for the players involved. There are currently material differences between the prize money levels on the women's WTA and men's ATP tours. Whilst the minimum prize money levels are set by the tours themselves, the LTA, with the full support of the WTA, has chosen to significantly uplift the WTA prize money at Queen's and Eastbourne in 2025 and will fully close the gap between WTA and ATP prize money at these events no later than 2029. This year the WTA 500 prize money at the HSBC Championships will rise to a record $1.415m. The HSBC Championships will be the highest paying WTA 500 event, of its draw size, in the world this year. The WTA 250 prize money at the Lexus Eastbourne International will rise to $389,000 – making this the highest paying WTA 250 event anywhere on the tour. Scott Lloyd, LTA Chief Executive said: 'We are making significant increases this year to the women's prize money at Queens and Eastbourne and want to achieve equal prize money as soon as possible. 'The LTA is committed to growing women's tennis, both at professional and grass-roots level and this move is an important part of that commitment. This year fans will be able to enjoy both men's and women's tennis on the biggest stages that we can offer and we want to develop the tournaments so that the women's events deliver a path to profitability and greater visibility for the sport. 'We aspire to play a leading part in the growth and development of women's tennis globally, and we'll continue to explore new ways in which we can do this.' Portia Archer, WTA CEO said: 'We fully support the LTA's initiatives to increase the women's prize pot at its events, with a goal of achieving parity in the longer term. WTA athletes deliver consistently engaging and powerful games on court to entertain courtside fans and worldwide audiences. 'This move sends a powerful message that the women's game is valued and will inspire new generations of girls picking up racquets to know their endeavours will be recognised.'
The Herald Scotland
5 hours ago
- The Herald Scotland
New risks emerge as America becomes less attractive
For decades, international investors have treated US government bonds as the safest place for their money. A long bull market in shares has been supported by American bonds and a sound US dollar. Since the global financial crisis of 2008, the underpinning of a 'safe haven' has helped stock markets to cope with other uncertainties. Now, investors are demanding much higher returns to lend money to the US government long-term. America is becoming less attractive to global investors at a time when its government needs them for finance more than ever. There is plenty to be nervous about. The US government is spending far more than it takes in, with the deficit up this year. Trump's spending and tax cut plans are likely to add to the US national debt over the next decade. And the US dollar has fallen to its lowest level in almost three years. US business confidence is weak, with the full impact of the supply turmoil yet to bite. Many manufacturers had stockpiled goods and components ahead of Trump's tariffs and import controls, but this buffer will soon be exhausted. May's stock market rally might seem reassuring on the surface. Major US technology companies like Apple, Microsoft, Amazon, and Nvidia delivered strong earnings and drove most of the market gains. The biggest seven tech companies alone were responsible for more than half of the US stock market's rise in May. But these trading results do not yet reflect the full impact of the trade war and supply changes. Analysts expect slower earnings growth for these businesses over the next year. Trump still plans further action, and the tariffs to date will produce significant adverse effects; higher consumer prices, lower business investment and lower economic growth. Read more: Perhaps most worrying for investors is the inflation risk building up worldwide. As global tensions rise, governments will spend more on defence, with limited scope for tax increases. Business costs will also increase, as trade disputes continue to disrupt how goods move around the world. Global borrowing costs could force central banks to keep interest rates higher for longer. The Governor of the Bank of England has warned that interest rate cuts are now more uncertain. There are signs that the tension between governments that want to spend more and nervous international lenders is also playing out in the UK, EU and Japan. British government bonds – gilts- are already seeing pressure as investors become more choosy about lending to governments anywhere. The OECD report this month warned that weak consumer confidence and fragile public finances leave the UK vulnerable to shocks. Appeasing lenders by cutting spending or raising taxes would hit economic growth. The end of US exceptionalism, linked to the declining role of the US dollar as a reserve currency, may be a gradual process as it was for the UK. There is still growth in many major US businesses and the US stock market is by far the most liquid globally. Shares have a record of coping better than bonds with rising inflation and there is value is stock markets outside the US. But we may be seeing the end of an era when investors could pay less attention to currency movements. And, although government bonds have a role in diversifying portfolios along with a spread of investments internationally, it is harder now to escape geopolitical risks. The recent stock market rebound may give opportunity to rebalance portfolios. Colin McLean is a director of Barnton Capital
