London open: Stocks edge higher ahead of BoE announcement

At 0835 GMT, the FTSE 100 was up 0.3% at 6,524.79.

Spreadex analyst Connor Campbell said: "After losing steam in places on Wednesday, the markets made an attempt to return to the rebounding gains seen earlier in the week.

"The UK’s start came in the shadow of this afternoon’s Bank of England meeting. The pound was anxious after the bell, falling 0.4% against the dollar and 0.2% against the euro. That decline has sent cable below $1.359 for the first time in over two weeks."

Weakness in the pound was helping to prop up the FTSE, Campbell said. The top-flight index tends to benefit from a weaker sterling, as around 70% of its constituents derive most of their earnings from overseas.

The BoE rate announcement is due at midday.

"Though the BoE isn’t expected to announce any changes to monetary policy, it is set to reveal the findings of its review into the impact of negative interest rates on the banking sector," said Campbell. "Andrew Bailey has repeatedly poured cold water on the idea of negative rates; a reaffirmation of that belief could pull sterling out of its funk. Anything else would pose a big problem for the pound."

In equity markets, caterer Compass Group was the top gainer as it told shareholders it was sorry for substandard free school meal packages and said revenue fell by a third in the first quarter, with no pickup expected in the second quarter.

Barratt Developments was on the rise after saying that first-half pre-tax profit edged higher amid record completions, as the housebuilder declared an interim dividend.

BT Group was trading higher after saying it was on track to meet full-year forecasts despite a fall in third-quarter core earnings.

Royal Dutch Shell gained ground even as it said fourth-quarter adjusted earnings fell 87% to a worse-than-expected $393m year-on-year as the Covid pandemic hammered energy consumption.

Unilever slumped as the consumer goods company increased its fourth-quarter dividend and reported a decline in annual profit caused mainly by currency swings.

Watches of Switzerland was also in the red after the release of its third-quarter update.

Market Movers

FTSE 100 (UKX) 6,524.79 0.26%
FTSE 250 (MCX) 20,845.18 0.45%
techMARK (TASX) 4,142.37 0.77%

FTSE 100 - Risers

Barratt Developments (BDEV) 700.60p 4.04%
Compass Group (CPG) 1,389.00p 2.93%
Whitbread (WTB) 3,071.00p 2.57%
Taylor Wimpey (TW.) 159.25p 2.21%
BT Group (BT.A) 131.15p 1.90%
Persimmon (PSN) 2,748.00p 1.78%
Prudential (PRU) 1,227.00p 1.57%
InterContinental Hotels Group (IHG) 4,922.00p 1.53%
Pershing Square Holdings Ltd NPV (PSH) 2,485.00p 1.43%
GlaxoSmithKline (GSK) 1,300.20p 1.42%

FTSE 100 - Fallers

Unilever (ULVR) 4,151.00p -4.27%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,030.00p -2.00%
Fresnillo (FRES) 1,013.50p -1.98%
United Utilities Group (UU.) 920.00p -1.67%
Avast (AVST) 497.60p -0.58%
Reckitt Benckiser Group (RB.) 6,226.00p -0.51%
Severn Trent (SVT) 2,360.00p -0.25%
JD Sports Fashion (JD.) 813.40p -0.20%
BP (BP.) 258.00p -0.12%
Ocado Group (OCDO) 2,843.00p -0.11%

FTSE 250 - Risers

RIT Capital Partners (RCP) 2,135.00p 4.15%
Oxford Instruments (OXIG) 2,100.00p 3.45%
Carnival (CCL) 1,313.50p 3.43%
Petrofac Ltd. (PFC) 119.70p 3.37%
Kaz Minerals (KAZ) 793.40p 2.56%
Network International Holdings (NETW) 349.40p 2.46%
Cranswick (CWK) 3,520.00p 2.39%
Unite Group (UTG) 952.00p 2.37%
Paragon Banking Group (PAG) 462.00p 2.35%
SSP Group (SSPG) 330.40p 2.16%

FTSE 250 - Fallers

Watches of Switzerland Group (WOSG) 606.00p -5.61%
Virgin Money UK (VMUK) 150.05p -2.41%
Vivo Energy (VVO) 78.20p -2.13%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,030.00p -2.00%
Kainos Group (KNOS) 1,300.00p -1.66%
TI Fluid Systems (TIFS) 262.20p -1.61%
Pets at Home Group (PETS) 416.40p -1.37%
Baillie Gifford Japan Trust (BGFD) 1,060.00p -1.30%
Aston Martin Lagonda Global Holdings (AML) 2,113.00p -1.03%
Cineworld Group (CINE) 72.26p -1.01%