CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.96% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

FTSE slips as bank, defence stocks fall; BoE delivers first rate hike in 3 years

By Reuters News

By Darshan Kumar R

Nov 5 (Reuters) - Britain's FTSE 100 slipped on Thursday as losses in bank and defence stocks weighed, while the Bank of England raised interest rates for the first time in more than three years.

The FTSE 100 index .FTSE closed 0.43% lower at 10,782.66 after touching a near three-month high earlier in the session, while the FTSE 250 .FTMC was down 0.86% on the day after hitting an all-time high.

  • The BoE delivered its first interest rate hike in more than three years and signalled that further tightening could follow if the Iran war continues to stoke inflationary pressures

  • British inflation is likely to reach around 5% by the middle of next year, the BoE said, more than double its 2% target

  • "Clearly rates will need to go up again if energy prices stay high, but it's a question of how many times," said Michael Metcalfe, head of macro strategy at State Street, adding that investors are pricing in at least one further rate hike

  • Financials were the biggest drag on the FTSE 100 while banking shares .FTNMX301010, which posted their strongest gain in nearly six months on Wednesday, fell 1.3%.

  • HSBC HSBA.L, Standard Chartered STAN.L, NatWest Group NWG.L and Barclays BARC.L lost between 0.8% and 2.9% each

  • The aerospace and defence sector .FTNMX502010 led sector declines with a 3% fall after Democrats swept the US Congress, raising concerns that military spending could come under greater scrutiny. Rolls-Royce RR.L fell 1.8%, while BAE Systems BAES.L was down 5.4%

  • Coca-Cola HBC was the FTSE's biggest decliner for the day with a drop of nearly 18%, its steepest one-day fall on record

  • Hikma Pharmaceuticals HIK.L fell 3.7% after the drugmaker lowered the higher end of its annual profit forecast range

  • Cushioning losses, precious metals miners .FTNMX551030 rose 4.2%, supported by higher gold prices

  • Investors also sought refuge in defensive stocks, with retailers .FTNMX404010 gaining 1.4%, while the personal care, drug and grocery sector .FTNMX452010 added nearly 1%

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.