{"id":128225,"title":"FTSE Holds Steady as Investors Await Interest Rate Direction","publisher":"Share Talk","author":"sharetalk","published":"2025-10-16T18:58:21+00:00","modified":"2025-10-16T18:58:21+00:00","canonical_url":"https://www.share-talk.com/ftse-holds-steady-as-investors-await-interest-rate-direction/","markdown_url":"https://www.share-talk.com/ftse-holds-steady-as-investors-await-interest-rate-direction.md","json_url":"https://www.share-talk.com/ftse-holds-steady-as-investors-await-interest-rate-direction.json","category":"Blogs","categories":["Blogs","Technology","Technology, Media & Telecoms"],"tags":["Beefeater","BRITISH","Donald Trump","Dow Jones","economy","FTSE 100","FTSE 250","G7","NASDAQ","Premier Inn","Whitbread","Xi Jinping"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2024/01/LONDON-31ST-JAN-24.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"**London stocks ended mixed on Thursday** as investors digested a **varied slate of corporate updates** and remained cautious ahead of **next week’s UK inflation figures**, which could shape the **Bank of England’s next interest rate decision**.\n\nThe **FTSE 100** edged up **0.1%**, while the **mid-cap FTSE 250** slipped **0.1%**, reflecting the muted sentiment across markets.\n\nOfficial data showed the **UK economy grew by 0.1% in August**, matching analyst forecasts and offering a modest boost for **Chancellor Rachel Reeves** ahead of her **November Budget**. However, the small rebound from July’s contraction is **unlikely to alter expectations of tax rises** as the government grapples with a sluggish economy and tight fiscal constraints.\n\nThe UK continues to face **stubbornly low growth** and **the highest inflation rate among major developed economies**, complicating the **Bank of England’s policy path**. The central bank **held rates at 4% last month**, but markets remain divided on whether it will begin **cutting rates in November, December, or early 2026**.\n\nWithin the market, **insurance stocks** were among the **worst performers**, with **Admiral Group** falling **2.4%**.\n\nIn New York, the **S&P 500** was **flat**, the **Nasdaq Composite** rose **0.2%**, and the **Dow Jones Industrial Average** slipped **0.1%**. The **MSCI World Index**, which tracks equities across major markets, was up **0.2%** overall.\n\nMarkets have been volatile since **Donald Trump** last week **threatened 100% tariffs on Chinese goods** in retaliation for Beijing’s new **export controls on rare earth materials**. The move reignited fears of an escalation in the long-running US-China trade war.\n\nHowever, **Treasury Secretary Scott Bessent** struck a **more conciliatory tone** on Wednesday, signalling that a **pause in new tariffs** may be possible as both sides work to resolve the rare earths dispute. He also confirmed that **President Trump still intends to meet Chinese President Xi Jinping later this month**."}