(Reuters) – British stocks were set to fall for the third straight session on Wednesday, as a stronger pound put pressure on the export-heavy index, while caution prevailed ahead of the Bank of England’s rate decision.
The FTSE 100 edged marginally lower at 8,565.73 by 10:05 GMT, while the domestically focussed mid-cap FTSE 250 lost 0.3%. Both indexes were set to fall for a third straight session.
A domestically stronger currency, which rose 0.3% to approach a near one-month high, weighed on the export-heavy FTSE 100 index.
Keeping losses in check was the healthcare sector that rose 1.1%, boosted by a 5.5% gain in GSK after the drugmaker posted a better-than-expected fourth-quarter result.
Meanwhile, precious metal miners was the top sectoral gainer, rising 2.5%, as gold prices jumped 1% to a record high. [GOL/]
Ferrexpo extended losses from the prior session, down 8.6%, as the miner on Tuesday said a civil claim worth 157 billion hryvnias ($3.77 billion) was filed against its Ukrainian unit.
Grainger on the other hand, gained 3.8% after the provider of private rental homes posted a 15% growth in total net rental income for the four-month period to January end.
On the macro front, the Bank of England’s monetary policy committee is set to convene on Thursday to take a call on interest rates, with markets having fully priced in a 25-basis-point cut.
“We expect the BoE to cut rates by 25bp and easing guidance will be strengthened relative to market expectations. At least one 25bp cut per quarter should be in play as growth risks remain heavily to the downside,” said Geoff Yu, senior market strategist at BNY.
(Reporting by Pranav Kashyap in Bangalore)
