London’s FTSE 100 dipped at the open on Thursday, with investors on edge ahead of the Bank of England’s rate decision at midday. Blue-chips fell 0.4% to 9,130.81, while the FTSE 250 edged up 0.1% and AIM All-Share rose modestly.
The Bank is widely expected to deliver a 25 basis point rate cut. However, with inflation risks persisting and the UK economic outlook clouded by tariff threats and tax hikes, the vote split will be closely watched. Markets are anticipating a 7–1–1 vote, with one MPC member pushing for a larger cut and another resisting any move.
Any hawkish language around the pace of easing could give sterling a lift.
Economic data earlier today showed a 0.4% monthly rise in UK house prices in July, according to Halifax. While the pace picked up from June’s 0.1% rise, annual growth slowed to 2.4%, adding to the picture of a cooling property market.
In the US, Wall Street closed higher overnight, with the Nasdaq up 1.2% and the S&P 500 gaining 0.7%, bolstered by tech strength ahead of Friday’s jobs report.
Hikma Pharmaceuticals fell nearly 10% despite a rise in interim profit and revenue. The group maintained full-year guidance and hiked its dividend, but investors appeared underwhelmed by the outlook.
InterContinental Hotels rose 5.5% after posting a 34% jump in pretax profit and lifting its interim payout. The company said it remains on track to meet full-year expectations, buoyed by stable demand.
Epwin Group surged 31% after agreeing to a £167 million cash takeover from Germany’s Laumann Group. The deal values shares at a 32% premium and implies an enterprise value just under £270 million.