In early trading, the FTSE 100 experienced a slight dip as market participants anticipated interest rate verdicts from the US Federal Reserve and the Bank of England.
The index, which is dominated by exporters, decreased by 0.1%, and the FTSE 250, a mid-cap index, declined by 0.4%. Concurrently, Make UK, Britain’s primary manufacturing trade association, revised its growth projections for the year downward.
Earlier in August, the Bank of England upped the interest rates by 0.25 percentage points, reaching a 15-year high of 5.25%. This marked their fourteenth consecutive increase, with indications that high borrowing costs might persist.
The market predicts a 78% likelihood that the interest rates will undergo another hike this Thursday, potentially reaching 5.5% in what might be the concluding adjustment of this period.
Phoenix Group’s shares saw an uptick of up to 1.6% when the life insurance company anticipated its 2023 cash flow to hit the upper end of its predicted spectrum.
After agreeing to divest its principal plant in Russia to a Sezar Group subsidiary for 80 billion roubles (approximately £666 million), Mondi’s stock leapt by 4.9%. Sezar Group is a real estate development company based in Moscow.
Following the announcement of its intention to sell its UK automotive segment to US-based Lithia Motors for £250 million, Pendragon’s stock value skyrocketed by 25.9%.
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