Oil Corporations Boost FTSE 100; Investors look to the BoE’s political decision


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The offices of the London Stock Exchange Group can be seen in the City of London, UK on December 29, 2017. REUTERS / Toby Melville

  • BT Group rises with confirmed outlook
  • BoE rate decision due at 1200 GMT
  • Pound weakness boosts dollar-making businesses
  • FTSE 100 adds 0.4%, FTSE 250 jumps 0.9%

Nov. 4 (Reuters) – London’s FTSE 100 rose Thursday, led by energy stocks tracking crude oil prices higher as investors await a major monetary policy decision from the Bank of England as it is expected to become the first major central bank since the pandemic that raises interest rates.

The central bank will make its announcement at 1200 GMT amid rising prices and supply chain problems. The stock markets have fully priced in a bank rate hike from 0.1% to 0.25%, while economists remain divided. Continue reading

“A rate hike of 0.15% to 0.25% could be argued as fully in line with the recovery in the UK economy since the emergency measures were introduced in March 2020,” said Michael Hewson, chief analyst at CMC Markets UK.

“Especially if the UK economy cannot withstand a 0.15% rise in the key interest rate, we are indeed in a very sad state … to deliver on its promises.”

The reference index FTSE 100 (.FTSE) gained 0.4% up to 0910 GMT, with the oil companies BP (BP.L) and Royal Dutch Shell (RDSa.L) as well as the telecommunications company BT Group (BT.L) among the best Performers belonged.

BT Group (BT.L) gained 5.1% after confirming its outlook for this year and next, while reporting a 3% decline in first-half sales. Continue reading

The pound weakened as currency markets waited for the BoE’s razor-sharp decision, which further boosted the export-oriented FTSE 100 index and dollar-making companies like British American Tobacco (BATS.L).

Supply chain problems and rising inflationary pressures have caused the FTSE 100 to lag behind its European and US competitors, which traded near record levels after a dovish stance by the Fed on Wednesday.

The domestic mid-cap index (.FTMC) rose 0.9%, led by positive results from engineering company IMI (IMI.L) and food ingredient maker Tate & Lyle (TATE.L).

Britain’s second largest supermarket grocer, Sainsbury’s (SBRY.L), fell 3.6% to the bottom of the blue chip index as supply chain uncertainty outweighed a 23% increase in profit in the first half. Continue reading

Reporting by Bansari Mayur Kamdar and Shashank Nayar in Bengaluru; Editing by Subhranshu Sahu and Shailesh Kuber

Our Standards: The Thomson Reuters Trust Principles.

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