Sept 16 (Askume) – London’s blue-chip stock index fell on Monday as a rise in sterling weighed on export-oriented companies, while investors focused on the central bank’s key interest rate decision.
The benchmark FTSE 100 Index (.FTSE)Stocks declined 0.1% on Friday , their best weekly performance since mid-August, as investors raised expectations for more aggressive interest rate cuts by the Federal Reserve on Wednesday.
Mid-cap stocks (.FTMC) and small-cap stocks (.FTSC) fell 0.1% and 0.2%, respectively.
The pound rose 0.3%, reaching its highest level in more than a week, while gold also hit a record high.
However, UK mining stocks (.FTNMX551030) fell 0.2% after rising 6.8% in the previous session , as industrial output data from top consumer China disappointed.
With global growth concerns once again taking center stage, the key event this week is the Federal Reserve’s interest rate decision, with markets weighing the possibilities of a 25 basis point versus a 50 basis point rate cut.
After weeks of volatility amid mixed economic data, traders now see a 61% chance of a substantial rate cut of 50 basis points, according to CME’s FedWatch tool.
The Bank of England meets on Thursday and is expected to leave interest rates unchanged, with investors focused on information on the BOE’s direction for the rest of the year and the pace of its bond sales.
On the share front, insurer Phoenix Group (PHNX.L) fell 2.3%, the biggest faller on the FTSE 100, after it halted the sale of its sunlife business.
Playtech (PTEC.L) rose 8.5% after the gaming technology company said it expects adjusted core profit in 2024 to be slightly above market expectations.
