Published : 4 days ago, on 04/12/2024

(Reuters) – The UK’s benchmark FTSE 100 fell on Wednesday, ending a five-day winning streak, dragged by AstraZeneca’s decline on target price cut, while investors assessed domestic economic data and Bank of England Governor’s Andrew Bailey remarks on interest rate cuts.

The blue-chip FTSE 100 fell 0.3%, while the midcap FTSE 250 rose 0.2% to hit more than a six-week high at 1012 GMT.

AstraZeneca slipped 2.7% to the bottom of the blue-chip index after HSBC analysts cut the target price on the drugmaker’s stock to 13,720p from 14,070p.

BoE’s Bailey reiterated that there will be gradual cuts in interest rates next year, adding that the process of falling inflation is well embedded.

The BoE is expected to keep interest rates on hold at 4.75% this month, but deliver about 78 basis points worth of rate cut by the end of next year.

The sterling fell after the Financial Times reported Bailey saying the BoE expected four interest rate cuts next year.

Shares of miners Antofagasta, Glencore and Anglo American declined between 0.9% and 1.7% with copper prices easing against a firm dollar. [MET/L]

Additionally, ZIGUP was the top loser on the midcap index, falling 8.4% as the commercial vehicle rental provider’s pretax profit fell 17.2% to 82 million pounds ($104.1 million) for the first half.

Legal & General was a standout and gained 3.4% as the life insurer said it anticipates returning to shareholders a proportion of capital this year and was on track to deliver mid-single digit growth in operating profit for the financial year 2024.

Meanwhile, Britain’s dominant services sector lost steam in November, although not as much as first feared, as a looming rise in employer taxes weighed on firms’ hiring plans, a survey showed.

On the global front, investors braced for a crucial no-confidence vote by French lawmakers that will likely oust Prime Minister Michel Barnier’s government. France’s benchmark index CAC 40 was up 0.2%.

(This story has been corrected to say ‘six-week high,’ not ‘seven-week high,’ in paragraph 2)

(Reporting by Nikhil Sharma in Bengaluru; Editing by Shinjini Ganguli)