Source: Sharecast
Sharp losses in Frankfurt and Paris, and a weak start on Wall Street, would further dampened market sentiment in afternoon trade.
The FTSE 100 finished 0.4% lower at 9,735.78, pulling back after settling a new record high of 9,777.08 on Wednesday, as strong gains from banks, miners and retailers were outweighed by heavy falls from blue chips Hikma, Smith & Nephew, Diageo and Convatec.
The Monetary Policy Committee meeting was the focal point of the session as the BoE voted by a majority of five to four to leave the cost of borrowing at 4%, breaking with its established pattern of cutting rates at every other meeting.
Although economic growth remains sluggish, the BoE is also battling persistently sticky inflation. The consumer price index currently stands at 3.8%, off recent highs but still well above the Bank's long-term target of 2%.
“Today’s decision clearly opens the door to a December cut, but that remains contingent on the incoming data," said Matt Swannell, chief economic advisor to the EY ITEM Club.
"If there are further signs of falling inflationary pressures in the coming months and if the bulk of the tax rises expected at the Autumn Budget are introduced almost immediately, then there might be a slim majority on the Committee in favour of a Christmas cut."
Hikma, Smith & Nephew, Diageo and Convatec weigh on FTSE 100
Hikma Pharmaceuticals was the standout mover of the day on the Footsie, tumbling 14% as it downgraded medium-term guidance for its injectables unit.
Medical equipment manufacturer Smith & Nephew raised its full-year free cash flow guidance but shares dropped 11% after third-quarter underlying revenues missed expectations.
Drinks maker Diageo was another heavy faller, slumping 7% as it cut its full-year sales and profit forecast amid weakness in Chinese white spirits and a slowdown in demand in North America.
Investors also gave a cool reaction to a leadership reshuffle at medical products and technologies group Convatec, as the company appointed a new CEO and CFO with immediate effect.
Leading the risers was Sainsbury as it lifted full-year profit guidance and increased shareholder payouts after interim earnings and sales beat expectations. Sector peer Tesco also rose.
IMI was also in the black as it hailed an "excellent" third-quarter performance and said it was on track deliver its fourth consecutive year of mid-single digit organic revenue growth.
Drugmaker AstraZeneca advanced as it reiterated its full-year guidance and posted better-than-expected third-quarter earnings, driven by solid sales of its cancer, heart and kidney disease drugs.
NatWest and Lloyds rose on reports that chancellor Rachel Reeves was minded to rule out increasing taxes on the banking sector in her upcoming Budget.
Market Movers
FTSE 100 (UKX) 9,735.78 -0.42%
FTSE 250 (MCX) 21,905.03 -0.86%
techMARK (TASX) 5,480.54 -1.39%
FTSE 100 - Risers
Sainsbury (J) (SBRY) 355.80p 5.52%
IMI (IMI) 2,492.00p 3.75%
Antofagasta (ANTO) 2,746.00p 3.51%
Fresnillo (FRES) 2,220.00p 3.45%
Auto Trader Group (AUTO) 798.60p 3.18%
AstraZeneca (AZN) 12,834.00p 3.08%
NATWEST GROUP (NWG) 600.80p 2.11%
Tesco (TSCO) 474.40p 1.74%
Standard Chartered (STAN) 1,609.00p 1.58%
Lloyds Banking Group (LLOY) 90.92p 1.52%
FTSE 100 - Fallers
Hikma Pharmaceuticals (HIK) 1,522.00p -14.06%
Smith & Nephew (SN.) 1,242.00p -10.87%
Diageo (DGE) 1,680.00p -6.54%
Metlen Energy & Metals (MTLN) 43.65p -5.42%
Pearson (PSON) 1,002.50p -4.80%
Games Workshop Group (GAW) 15,470.00p -4.51%
Halma (HLMA) 3,428.00p -4.03%
The Sage Group (SGE) 1,115.00p -4.00%
Convatec Group (CTEC) 233.60p -3.71%
Diploma (DPLM) 5,365.00p -3.51%
FTSE 250 - Risers
Helios Towers (HTWS) 171.80p 10.84%
RS Group (RS1) 595.00p 7.69%
OSB Group (OSB) 552.50p 5.04%
Hochschild Mining (HOC) 336.40p 4.93%
Energean (ENOG) 1,023.00p 3.75%
Watches of Switzerland Group (WOSG) 402.80p 3.28%
Endeavour Mining (EDV) 3,050.00p 1.94%
Derwent London (DLN) 1,789.00p 1.88%
Ceres Power Holdings (CWR) 377.00p 1.40%
Primary Health Properties (PHP) 96.95p 1.36%
FTSE 250 - Fallers
TBC Bank Group (TBCG) 3,785.00p -11.87%
Ashmore Group (ASHM) 170.80p -8.86%
Softcat (SCT) 1,488.00p -5.88%
Howden Joinery Group (HWDN) 820.00p -5.86%
Oakley Capital Investments Limited (DI) (OCI) 535.00p -4.12%
Trustpilot Group (TRST) 190.60p -3.83%
NCC Group (NCC) 144.00p -3.74%
Genus (GNS) 2,380.00p -3.64%
Wizz Air Holdings (WIZZ) 998.50p -3.53%
Oxford Biomedica (OXB) 637.00p -3.48%
