The FTSE 100 closed 0.9% lower at 10,305 on Wednesday, dragged down by losses in fast‑moving consumer goods and utility stocks ahead of the Bank of England’s policy decision on Thursday. Utilities Severn Trent, United Utilities, and National Grid each fell more than 2%, reflecting broader pessimism toward the sector across Europe. The move came as natural gas prices surged again following strikes on Iranian gas processing plants, while major European governments convened to discuss the situation.
Among consumer names, Unilever dropped 3.5% after announcing it is considering a spin‑off of its food division from the main group. Coca‑Cola and British American Tobacco also declined by more than 3%.
The Bank of England is widely expected to leave interest rates unchanged, in line with other G10 central banks, as policymakers remain cautious in the face of an uncertain macroeconomic backdrop linked to the war. Elevated inflation risks are increasingly colliding with signs of labor‑market softness, with the unemployment rate forecast to rise to 5.3% in February.
