The FTSE 100 closed slightly lower on Thursday, down 0.4% at 9,735.78, as investors digested the Bank of England’s interest rate decision and a flood of corporate earnings updates. The FTSE 250 fell 0.9% to 21,905.03, while the AIM All-Share slipped 0.4% to 753.13.
The Bank of England left Bank Rate unchanged in a tight 5-4 vote, with Governor Andrew Bailey joining four other members to maintain the status quo. Four MPC members, including Sarah Breeden and Swati Dhingra, had favoured a 0.25 percentage point cut, citing that policy was already “significantly over-restrictive.”
The MPC highlighted that risks to medium-term inflation are now more balanced, but further evidence is needed before future rate cuts can be considered. This marked the second consecutive hold after cuts in February, May, and August.
Despite the cautious tone from Threadneedle Street, the FTSE 100 outperformed its European and US peers. The CAC 40 in Paris fell 1.4% and the DAX 40 in Frankfurt slid 1.3%. Wall Street indices were deep in the red by the London close, with the Dow and S&P 500 down 0.9% and the Nasdaq 1.6%. Job cuts surged in the US in October, rising 183% month-on-month, the highest for any October since 2003.
In London trading, gains were led by J Sainsbury, which rose 5.5% after raising profit guidance on strong sales, and IMI, up 3.8%, confirming mid-single-digit organic revenue growth for a fourth consecutive year. AstraZeneca climbed 3.1% after reporting third-quarter sales above expectations, supporting growth into 2026.
Bank shares also benefited from reports that the sector would likely avoid tax increases in the upcoming budget. NatWest gained 2.1%, Lloyds Banking Group 1.8%, and Barclays 0.6%.
Hikma Pharmaceuticals fell 14% after cutting medium-term guidance amid delayed production at a US site.
Smith & Nephew dropped 11% after third-quarter revenue missed consensus.
Diageo declined 6.5% after lowering guidance despite stronger-than-expected sales, citing weakness in China and North America.
