Get 40% Off
💰 Warren Buffett reveals a $6.72 billion stake in ChubbCopy Portfolios

UK's FTSE index ends flat; little reaction to BoE rate decision

Published 11/05/2023, 08:36
Updated 11/05/2023, 17:45
© Reuters. FILE PHOTO: Pedestrians leave and enter the London Stock Exchange in London, Britain August 15, 2017. REUTERS/Neil Hall/File Photo
UK100
-
HSBA
-
BP
-
TSCO
-
ITV
-
FTMC
-

By Johann M Cherian and Shashwat Chauhan

(Reuters) -The UK's FTSE 100 share index ended virtually flat on Thursday, although mining stocks fell as base metal prices slumped on China growth concerns.

The Bank of England raised its bank rate for the 12th consecutive time but its decision had been expected and had little impact on the stock market.

The blue-chip FTSE 100 closed down just 0.1%, after briefly reaching its lowest level in five weeks, while the FTSE 250 midcap index ended down 0.04%.

Industrial metal miners slid 3.2%, hitting an eight-month low as copper and other base metal prices dropped after China's consumer prices rose at the slowest pace in more than two years in April, while factory gate deflation deepened. [MET/L]

The BoE raised its key interest rate by 25-basis points to 4.5% and made the biggest improvement to its growth projections since it first published forecasts in 1997.

Craig Erlam, senior market analyst at Oanda, said that while the central bank's decision to increase its forecasts came as a surprise, it didn't change people's views.

"The market is in a wait and see movement and we've got to wait for more data to confirm which direction of trouble we're headed in."

British gilt yields slipped, while bank stocks fell 0.8%.

Energy stocks slipped 1.0% following a slump in oil prices. [O/R]

Europe's largest bank HSBC (LON:HSBA) and energy giant BP (LON:BP) lost 1.2% and 1.9% respectively as they were trading without the entitlement for dividend.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Helping cut losses were gains in defensive stocks like healthcare major AstraZeneca (NASDAQ:AZN) and consumer staples company Unilever (LON:ULVR).

The London-based FTSE stock indexes have hit shaky ground in May following a rebound in April, as uncertainty over the outlook for interest rates and a mixed bag of corporate earnings dented investor sentiment.

British engine maker Rolls-Royce (LON:RR) said its new CEO's plan to boost the company's profitability was moving "at pace".

Its shares however, fell 6.7% with one analyst saying it was due to disappointment over the lack of an upgrade to the outlook.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.