London open: FTSE retreats ahead of BoE interest rate decision

London stocks were in the red on Thursday ahead of the Bank of England’s latest policy decision.

The FTSE 100 finished up 1.93% to 6,362.89 points on Wednesday, its highest close since 3 December, after a report showing a better-than-expected increase in Chinese exports gave a boost to mining stocks.

“Following yesterday’s China-inspired, 2016-high hitting surge the markets are slightly more reticent this Thursday, the FTSE especially pausing ahead of the Bank of England’s rate vote,” said Connor Campbell, financial analyst at Spreadex.

The BoE is widely expected to keep interest rates unchanged at 0.50% and the asset purchase programme at £375bn amid prolonged low inflation, political uncertainty surrounding the 23 June referendum on Britain’s European Union membership and concerns about a global economic slowdown.

Interest rates have been at a record low of 0.50% since March 2009 and are expected to stay there throughout this year.

The central bank’s Monetary Policy Committee will announce its policy measures at 1200 BST.

Across the Atlantic, investors will be kept busy with US data including initial jobless claims at 1330 BST and inflation at 1330 BST.

Inflation figures are expected to show an improvement in March with analysts pencilling in a 1.1% year-on-year rise, compared to 1.0% in February. The Federal Reserve is monitoring consumer prices as it determines the timing of the next interest rate hike.

Meanwhile, oil prices slid ahead of Sunday’s meeting in Doha between global producers to discuss a potential output freeze. Brent crude fell 1.2% to $43.63 per barrel and West Texas Intermediate dipped 1.5% to $41.14 per barrel at 0906 BST.

In company news, Burberry’s shares plunged after it warned profits for 2017 are likely to be around the bottom of the range of analysts' forecasts due to increased investment in the business and a "challenging demand environment".

Debenhams gained after the department store posted a 5.5% rise in first half profit as it confirmed the resignation of chief executive Michael Sharp.

PZ Cussons dropped after warning of difficult conditions in its main market of Nigeria in a trading update.

ITV edged higher on reports it has held takeover talks with Entertainment One, the FTSE 250-listed owner of Peppa Pig and distributor of the new David Brent film. However, Entertainment One said on Thursday that it has no received any approaches.

Market Movers

FTSE 100 (UKX) 6,338.42 -0.38%
FTSE 250 (MCX) 16,998.01 -0.29%
techMARK (TASX) 3,178.66 0.07%

FTSE 100 - Risers

Johnson Matthey (JMAT) 2,881.00p 1.98%
Tesco (TSCO) 182.65p 0.91%
easyJet (EZJ) 1,485.00p 0.88%
Royal Mail (RMG) 491.00p 0.82%
AstraZeneca (AZN) 4,133.00p 0.82%
Mediclinic International (MDC) 959.50p 0.79%
Smith & Nephew (SN.) 1,190.00p 0.76%
Ashtead Group (AHT) 855.00p 0.71%
International Consolidated Airlines Group SA (CDI) (IAG) 543.00p 0.65%
TUI AG Reg Shs (DI) (TUI) 1,058.00p 0.57%

FTSE 100 - Fallers

Burberry Group (BRBY) 1,245.00p -7.43%
Anglo American (AAL) 673.40p -5.06%
Randgold Resources Ltd. (RRS) 6,545.00p -3.39%
Standard Life (SL.) 347.30p -3.34%
Persimmon (PSN) 1,957.00p -3.17%
Fresnillo (FRES) 997.00p -2.92%
Antofagasta (ANTO) 456.10p -2.85%
Glencore (GLEN) 154.00p -2.84%
Standard Chartered (STAN) 506.70p -2.71%
Berkeley Group Holdings (The) (BKG) 3,017.00p -2.39%

FTSE 250 - Risers

Entertainment One Limited (ETO) 173.10p 9.14%
Hays (HAS) 134.10p 8.06%
Debenhams (DEB) 79.95p 3.36%
PayPoint (PAY) 855.50p 3.07%
Zoopla Property Group (WI) (ZPLA) 270.00p 2.39%
JD Sports Fashion (JD.) 1,184.00p 1.98%
Dechra Pharmaceuticals (DPH) 1,197.00p 1.01%
Clarkson (CKN) 2,274.00p 0.98%
Henderson Group (HGG) 259.20p 0.93%
Beazley (BEZ) 339.60p 0.74%

FTSE 250 - Fallers

Acacia Mining (ACA) 287.80p -3.78%
Kaz Minerals (KAZ) 164.10p -3.70%
Vedanta Resources (VED) 382.10p -2.87%
Virgin Money Holdings (UK) (VM.) 346.20p -2.86%
Tullow Oil (TLW) 219.70p -2.57%
Circassia Pharmaceuticals (CIR) 263.70p -2.44%
Centamin (DI) (CEY) 100.50p -2.33%
PZ Cussons (PZC) 310.70p -2.30%
Ophir Energy (OPHR) 76.75p -2.23%
OneSavings Bank (OSB) 295.00p -2.19%