UK stock markets experienced a slight dip last Wednesday as investors eagerly awaited interest rate announcements from the U.S. Federal Reserve and the Bank of England. Although it was broadly anticipated that the Federal Reserve would maintain the current interest rates, the subsequent statement and press conference held by Chair Jerome Powell were expected to offer crucial insights into potential future rate reductions.
Earlier hopes for a rate cut in March have recently diminished, with a number of economists now predicting that the Fed will delay any decreases until May. As for the Bank of England, it was virtually guaranteed that the interest rates would remain at 5.25 percent.
In separate news, UK house prices experienced an unexpected surge in January, according to data from mortgage provider Nationwide reported earlier in the day. Following a 0.4 percent increase the day before, the FTSE 100, a benchmark for UK stocks, also witnessed some changes.
Despite its robust performance throughout 2023, IT services company FDM Group saw a nearly 2 percent drop in value. Similarly, pharmaceutical company GSK saw a drop of more than 1 percent in its stocks, even though it reported strong performance in 2023 and announced an upgrade in its growth outlook.
