FTSE 100 subdued as energy, healthcare stocks limit broader gains
EWU•Britain’s FTSE 100 was flat at 10,731.34 points on Monday, while the FTSE 250 rose 0.7%. Energy and pharma stocks declined as investors awaited the Bank of England’s rate decision this week.
1. Mixed market performance
The FTSE 100 was flat at 10,731.34 points by 1130 GMT, while the FTSE 250 climbed 0.7%. Energy stocks fell 1.2% as oil prices dropped more than 4%, with Brent around $108 a barrel; Ithaca Energy fell 2.2% and BP lost 1.5%. Pharma stocks declined 0.6% after rising more than 5% on Friday.
2. Rate decision in focus
Investors awaited the Bank of England’s decision this week, with the central bank expected to raise rates by 25 basis points. September inflation and October manufacturing data showing the strongest output growth in more than two years underscored the case for tighter monetary policy. FirstGroup rose 4.8% after agreeing to sell certain assets to the West Yorkshire Combined Authority for £109 million.
