The FTSE 100 experienced a downturn, falling to 8,530, lagging behind other European markets. This decline occurred as investors reacted to the Bank of England’s rate cut and assessed the implications of the UK’s trade agreement with the US. The performance was further influenced by individual company results, with some stocks experiencing significant gains and losses.
- The FTSE 100 fell to 8,530.
- The underperformance compared to European counterparts.
- The Bank of England cut its Bank Rate by 25bps to 4.25%.
- Two MPC members preferred to hold the rate.
- Airtel Africa dropped 9% after results.
- Centrica plunged 7% after a trading update.
- IMI and Mondi increased over 4% after Q1 reports.
- Next added nearly 1% after raising guidance.
- New US trade deal kept 10% tariffs on British goods.
The FTSE 100’s movement reflects a complex interplay of factors. While a rate cut is often seen as a positive stimulus, the market appears concerned by the Bank of England’s hesitancy, signaling potential caution moving forward. Sector-specific news, driven by company performance reports and trade deals, is also contributing to the overall volatility. Individual company results, both positive and negative, are creating divergent performance within the index.