London open: FTSE falls as investors eye BoE policy announcement
By Michele Maatouk
Date: Thursday 19 Jun 2025
(Sharecast News) - London stocks fell in early trade on Thursday as investors eyed the latest Bank of England policy announcement amid ongoing tensions in the Middle East.
At 0820 BST, the FTSE 100 was down 0.4% at 8,812.82.
On Wednesday, the Federal Reserve kept the benchmark rate unchanged at 4.25% to 4.50% for the fourth consecutive meeting and signalled two cuts by the end of the year. The Fed also downgraded its growth forecasts for the next two years.
On home shores, the BoE is widely expected to leaves rates unchanged at 4.25% when it announces it decision at midday.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Markets are back under pressure as US officials continue to weigh the possibility of direct involvement in the escalating Iran-Israel conflict. Any move in that direction would likely rattle investor confidence further, raising fears of a broader regional escalation and dragging in other major powers like China, where trade talks with the US are already on a knife's edge.
"The FTSE 100 has mirrored the global risk-off mood, slipping in early trading and giving back yesterday's modest gains.
"Central banks are back in the spotlight today. After the US Federal Reserve kept interest rates on hold yesterday, it's now the Bank of England's turn to take centre stage. But don't expect any surprises - markets are betting on a near-zero chance of a rate move this side of the Atlantic.
"Economic conditions have played out pretty much as expected since the last meeting in May. Wage growth is starting to ease a bit, and there are some headwinds on the horizon - from rising tariffs to geopolitical tensions between Iran and Israel. Still, domestic demand remains solid, and inflation is still above target, giving policymakers enough reason to stick with a 'wait and see' approach for now. Perhaps more important than the decision itself, absent any surprise, will be the Bank's statement later today to see how they're reading the tea leaves."
In equity markets, United Utilities, Persimmon and Compass all fell as they traded without entitlement to the dividend.
Whitbread was also in the red as the Premier Inn owner reported a drop in first-quarter sales and pointed to a "challenging" market backdrop in the UK.
Recruiter Hays tumbled as it warned on full-year profits, citing "more challenging" permanent markets. In a pre-close year-end trading update, the company said it now expects FY25 pre-exceptional operating profit of around £45m. This is below company compiled consensus for £56.4m, based on ten analysts. Pagegroup was also sharply lower.
Mike Ashley's Frasers Group lost ground after it walked away from the Revolution Beauty bidding process, just 10 days after confirming its interest. Revolution Beauty tanked.
On the upside, oil majors BP and Shell gushed higher again.
Market Movers
FTSE 100 (UKX) 8,812.82 -0.35%
FTSE 250 (MCX) 21,178.37 -0.53%
techMARK (TASX) 5,039.50 -0.63%
FTSE 100 - Risers
Smurfit Westrock (DI) (SWR) 3,203.00p 1.52%
BP (BP.) 391.40p 1.27%
Shell (SHEL) 2,694.00p 1.01%
Ashtead Group (AHT) 4,511.00p 0.78%
BT Group (BT.A) 190.10p 0.40%
Centrica (CNA) 166.85p 0.30%
Babcock International Group (BAB) 1,064.00p 0.28%
Sainsbury (J) (SBRY) 287.80p 0.28%
Bunzl (BNZL) 2,228.00p 0.27%
BAE Systems (BA.) 1,937.00p 0.26%
FTSE 100 - Fallers
United Utilities Group (UU.) 1,129.00p -3.59%
Persimmon (PSN) 1,322.50p -3.26%
Airtel Africa (AAF) 172.50p -2.32%
3i Group (III) 4,074.00p -1.62%
Rio Tinto (RIO) 4,178.00p -1.47%
Whitbread (WTB) 2,750.00p -1.43%
Experian (EXPN) 3,778.00p -1.31%
Glencore (GLEN) 285.70p -1.23%
Melrose Industries (MRO) 480.70p -1.13%
Intermediate Capital Group (ICG) 1,939.00p -1.12%
FTSE 250 - Risers
Syncona Limited NPV (SYNC) 93.00p 4.49%
XPS Pensions Group (XPS) 389.00p 3.46%
Currys (CURY) 126.60p 2.01%
Chrysalis Investments Limited NPV (CHRY) 105.40p 1.35%
Ithaca Energy (ITH) 173.60p 1.28%
Greencoat UK Wind (UKW) 117.80p 1.20%
Harbour Energy (HBR) 208.60p 0.87%
Allianz Technology Trust (ATT) 414.50p 0.36%
Templeton Emerging Markets Inv Trust (TEM) 184.00p 0.22%
International Workplace Group (IWG) 200.60p 0.20%
FTSE 250 - Fallers
NCC Group (NCC) 154.00p -6.67%
Pagegroup (PAGE) 248.40p -4.75%
Ninety One (N91) 171.80p -4.71%
AO World (AO.) 92.80p -4.53%
Fidelity China Special Situations (FCSS) 245.00p -4.48%
Discoverie Group (DSCV) 640.00p -4.33%
Oxford Instruments (OXIG) 1,702.00p -3.73%
British Land Company (BLND) 381.20p -3.10%
Auction Technology Group (ATG) 422.50p -3.10%
Breedon Group (BREE) 414.40p -2.68%
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