Finance
AstraZeneca drags FTSE 100 lower ahead of key central bank decisions
Published by Global Banking and Finance Review
Posted on September 15, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 15, 2025
2 min readLast updated: January 21, 2026
FTSE 100 dips as AstraZeneca and a strong pound weigh on the market. Investors await central bank decisions, including the Bank of England's interest rate announcement.
(Reuters) - London's FTSE 100 index slipped on Monday, dragged down by heavyweight AstraZeneca and a stronger pound, as investors braced for a busy week of central bank meetings, including the Bank of England.
The blue-chip FTSE 100 closed down 0.1%, while the midcap FTSE 250 index edged up 0.1%
AstraZeneca fell 3.2% after Handelsbanken cut its rating and Reuters reported the drugmaker had paused a planned £200 million ($271.26 million) investment in its Cambridge research site.
The BoE is expected to hold interest rates steady on Thursday amid rising inflation and to slow its £100 billion‑a‑year bond unwind amid renewed gilt‑market volatility. A Reuters poll shows most economists expect one rate cut next quarter and another early next year.
The pound rose to its highest level since early July against the dollar. It was last up 0.4% at $1.36.
The spotlight remains on the U.S. Federal Reserve, which sets policy this week, alongside central banks in Japan and Canada.
Additionally, the U.S. and Britain will announce agreements on technology and civil nuclear energy during President Donald Trump's second state visit this week, as the UK seeks to finalise steel tariffs under a much‑anticipated trade deal.
Among other stocks, AO World jumped 14% after the British electronics retailer laid out plans for its first-ever share buyback and raised the lower end of its annual adjusted pre-tax profit forecast.
Sainsbury hit a more than four-year high, up 3.5%, after the supermarket group said it had terminated talks with Chinese e-commerce giant JD.com over selling the Argos general merchandise retailer.
Martin Sorrell's advertising group S4 Capital slumped 21% to a record low after cutting its annual revenue forecast for the second time this year.
(Reporting by Sanchayaita Roy and Sruthi Shankar in Bengaluru; Editing by Vijay Kishore and Tasim Zahid)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, reflecting the performance of the UK stock market.
A central bank is a financial institution that manages a country's currency, money supply, and interest rates, often overseeing the banking system and implementing monetary policy.
Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power.
A stock market is a public market for trading company shares and derivatives at an agreed price, enabling companies to raise capital and investors to buy ownership in businesses.
Economic growth refers to an increase in the production of goods and services in an economy over time, typically measured by the rise in Gross Domestic Product (GDP).
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