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Bank of England rate decision at 1200 GMT, expected to hold
Next expects sales growth to slow, shares down 4.2%
FTSE 100 up 0.4%, FTSE 250 gains 0.3%
Sept 18 (Reuters) – London stocks advanced on Thursday, in line with a broader move across Europe after the U.S. Federal Reserve cut interest rates for the first time this year, with focus now on the Bank of England’s (BoE) rate verdict later in the day.
The blue-chip FTSE 100 gained 0.4% by 0915 GMT, with gains in business information group RELX and aircraft engine maker Rolls-Royce among the top boosts.
UK’s midcap index also climbed 0.3%, helped by a 13.1% gain in Jupiter Fund Management after brokerage Peel Hunt upgraded its rating on the money manager to “buy” from “add”.
The personal goods sub-sector was among the top gainers, up 1.9% with shares of luxury firm Burberry advancing 3.1%.
Precious metal miners were the laggards, down 2% as gold prices came off their record highs.
Bourses across Europe advanced after the Fed reduced interest rates by an expected 25 basis points and indicated more cuts would follow to halt any slide in an already weakening labour market.
Focus now shifts to the BoE’s rate decision at 1200 GMT, with the central bank widely expected to hold its main lending rate steady at 4%.
“Inflation hasn’t fallen in a way that allows policymakers to signal further cuts. Markets should expect steady rates into the new year unless there’s a decisive downward break in the data,” said Nigel Green, CEO of deVere Group.
Data released earlier this week showed British inflation in August stood at 3.8% on a yearly basis, the highest among major advanced economies.
Among other top movers on Thursday, Next dropped 4.2% after the fashion retailer struck a cautious tone on the trading outlook, despite reporting a near 14% increase in first-half profit.
Pets at Home slumped 14.4% after the retailer said its CEO has left the company and cut its annual profit estimates. (Reporting by Shashwat Chauhan in Bengaluru; Editing by Shreya Biswas)
