London Stock Markets Slide Ahead of Earnings and BoE Rate Decision
Market Overview and Key Earnings
(Reuters) -London's main stock indexes dipped on Monday, dragged down by materials and utilities shares, as investors prepare for a week packed with major corporate earnings and the Bank of England's closely watched interest rate decision.
Stock Performance and Sector Analysis
The blue-chip FTSE 100 edged 0.2% down following its nearly 4% jump in October.
Economic Indicators and Expectations
The FTSE 250 midcap index also fell 0.3%, dropping for a sixth straight session.
This week brings a busy earnings calendar with drugmaker AstraZeneca, oil giant BP, spirits maker Diageo and British Airways owner IAG all reporting.
Meanwhile, the BoE is expected to pause its rate-cutting cycle on Thursday, though recent softer inflation and wage data could strengthen the case for a cut.
"The committee is deeply divided, and we don't expect clear signals on the Bank's next steps," ING analysts said in a note.
Industrial metal miners emerged as Monday's primary laggards, down 2.2%, with Rio Tinto and Glencore both sliding more than 2%.
The utilities sector also faced pressure, with midcap companies Pennon Group, Renewable Infrastructure Group and Greencoat UK Wind declining between 2.8% and 4.7%.
Frasers shed 5.4% after the RBC downgraded its rating on the sportswear and fashion retailer to "sector perform" from "outperform".
Vodafone Group dropped 5.2% after UBS downgraded its rating on the telecom company to "sell" from "neutral".
On the economic front, British factories reported their strongest month in a year in October, though the improvement was largely attributable to Jaguar Land Rover resuming production after a cyberattack, the S&P Global PMI data showed.
Back to stocks, financials, including life insurers and banks, were the biggest boosts.
Ceres Power Holdings jumped 11.1% after Goldman Sachs added the clean energy technology developer to its European Conviction List - a list of top "Buy" rated stocks in Europe.
Telecoms firm Airtel Africa extended gains to a fifth straight session after reporting earnings last week, climbing 5.9% on Monday.
(Reporting by Shashwat Chauhan and Ragini Mathur in Bengaluru; Editing by Vijay Kishore and Andrew Heavens)
