Key facts
- UK stock indexes declined on Thursday, pressured by financials and materials.
- Investors awaited the Bank of England's rate decision.
- The U.S. Federal Reserve kept rates unchanged but signaled potential for a hike this year.
- The FTSE 100 fell 0.94% and the FTSE 250 slipped 0.63%.
- Intertek gained 1.5% on a takeover agreement, while Informa rose 2.3% on growth forecasts.
Britain's main stock indexes fell on Thursday, with the blue-chip FTSE 100 down 0.94% and the midcap FTSE 250 down 0.63%, as investors awaited the Bank of England's interest rate decision and digested the U.S. Federal Reserve's hawkish policy outlook.
The Bank of England is widely expected to maintain its current interest rate of 3.75% later in the day. This comes after the Federal Reserve kept its rates unchanged on Wednesday, though nine Fed policymakers indicated a potential rate hike later this year due to persistent inflation concerns.
Sectoral losses were led by precious metal miners, which fell 5%, with Fresnillo and Hochschild Mining experiencing significant drops of 5.8% and 7%, respectively. Financials also weighed on the market, with London Stock Exchange declining 3.5% following a downgrade by Rothschild Redburn, and 3i Group slipping 4.3%.
Rate-sensitive homebuilders shed 2.6%, with Persimmon being the worst performer on the benchmark index, down 6.4%. UK's largest food retailer Tesco saw a 2.2% decrease after reporting a slowdown in first-quarter sales growth.
On the upside, Intertek gained 1.5% after agreeing to a takeover by Swedish private equity firm EQT. Informa, the world's largest exhibition group, was the top performer on the FTSE 100, rising 2.3% after forecasting stronger growth in 2027. Oil giants BP and Shell both declined 1.5% as oil prices reached their lowest point since the start of the Iran war.