FTSE slips as bank, defence stocks fall; BoE delivers first rate hike in 3 years
EWU•The FTSE 100 fell 0.43% to 10,782.66 as bank and defence shares declined after the Bank of England raised interest rates for the first time in more than three years. The FTSE 250 dropped 0.86%.
1. Indexes fall after rate hike
The FTSE 100 closed 0.43% lower at 10,782.66 on Thursday after touching a near three-month high earlier in the session. The FTSE 250 fell 0.86% after reaching an all-time high.
2. Banks and defence weigh
The Bank of England raised interest rates for the first time in more than three years and said further tightening could follow if the Iran war continues to stoke inflation. It said British inflation is likely to reach around 5% by the middle of next year, more than double its 2% target. Banking shares fell 1.3%, while aerospace and defence stocks dropped 3%; BAE Systems fell 5.4%.
3. Individual stocks diverge
Coca-Cola HBC fell nearly 18%, its steepest one-day drop on record, while Hikma Pharmaceuticals declined 3.7% after lowering the upper end of its annual profit forecast. Precious metals miners rose 4.2%, and retailers gained 1.4%.
