London’s FTSE 100 lost some ground ahead of this week’s potentially pivotal interest rate decision from the Bank of England, with higher oil prices helping energy majors rise. The main UK stock index slipped by 33 points to 7677.73, after striding over 230 points higher last week.
The fate of the index, which started the week near four-month highs, could well depend on events at Threadneedle Street on Thursday, when the Bank of England takes back the rates spotlight. City experts are ready for another quarter-point increase, to 5.5%, along with similar signals that peak rates have arrived.
There have already been 14 consecutive Bank of England hikes since December 2021 in a long fight against inflation, which was intensified by Russia’s invasion of Ukraine, which sent wholesale energy prices soaring.
And rising oil prices were back in focus today, with the price of Brent crude trading toward $95 a barrel, a level it last held in November.
The move on commodities markets was no doubt being eyed carefully at the BoE into its set-piece rate call. It also helped the FTSE 100’s heavily weighted oil majors make gains. BP rose 2p to 525p. Shell was 1.5p higher at 2581p.
Commodities trade and miner Glencore was up 3p to 460p. With interest rates back in focus, there was a renewed air of caution over some stocks that were at the forefront of last week’s gains.
Housebuilders eased back, with Persimmon down 24p at 1055p. Online estate agency Rightmove was over 7p weaker at 554p. Developer Berkeley fell 51p to 4473p.
