On Thursday, the FTSE 100 index experienced a decline, reaching the 8,530 mark, underperforming compared to its European counterparts. This shift occurred as investors evaluated both the Bank of England's interest rate reduction and the UK's trade agreement with the United States. The recent trade deal maintained the earlier 10% US tariffs on British goods, while including some additional procurement contracts and postponing discussions on opening UK markets to US agriculture and beef products.
In London, the Bank of England lowered its Bank Rate by 25 basis points to 4.25%, aligning with expectations. However, two members of the Monetary Policy Committee opted to maintain the current rate, casting a shadow over those advocating for a larger cut. This decision suggests a potential cautious approach by the Bank regarding future rate reductions.
In terms of individual stocks, Airtel Africa's share price dropped 9% following their financial results, while Centrica experienced a 7% decline after issuing a trading update that pointed to weaker performance in its residential energy unit. Conversely, IMI and Mondi shares rose by over 4% following the release of their first-quarter performance reports. Additionally, Next saw a nearly 1% increase after surpassing projections with an 11.4% rise in full-price sales for the first quarter and subsequently raising its guidance.
