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London open: Stocks little changed ahead of BoE announcement
Stocks in London were little changed in early trade as investors looked to the latest policy announcement from the Bank of England.
At 0835 BST, the FTSE 100 was down 0.2% to 6,663.42.
Meanwhile, oil prices edged up, with West Texas Intermediate 0.2% higher at $43.65 a barrel and Brent crude 0.4% firmer at $46.05.
On the data front, UK retail sales are at 0930 BST, while the BoE rate announcement is at 1200 BST.
Last month, the BoE cut rates for the first time since 2009, by 25 basis points, and embarked on an additional £70bn of asset purchases.
As a result, no change is expected this month, with rates seen on hold at 0.25%.
Ana Thaker, market economist at PhillipCapital UK, said: “On all accounts, the Bank of England are expected to do nothing in today’s MPC meeting. With a steady release of strong data, the central bank can take credit for their swift action and a ‘serene’ Carney is unlikely to rock the boat with a reversal of the rate cut or any further action today.
“However, as MPC member Kristin Forbes warned in front of the TSC, the recent run of strong data must be taken cautiously with a potential downturn around the corner as Brexit negotiations begin and the economy processes the consequences. Whilst many believe the bank may have acted too soon, lower rates will facilitate the economy if there is a downturn in data over September and October as we approach the end of the year and near closer to the expected triggering of Article 50.”
In corporate news, high street fashion stalwart Next was under the cosh after posting a drop in first-half profit and highlighting challenging trading since July.
GlaxoSmithKline nudged down despite saying its shingles vaccine proved highly successful in a trial among elderly patients.
On the upside, supermarket chain Wm. Morrison was on the front foot after it reported a jump in first-half profit.
Informa traded higher after announcing plans to buy Penton Information Services for £1.2bn.
FTSE 250 electronics distributor Electrocomponents surged after saying it expects to post a significant increase in first-half pre-tax profit following stronger-than-anticipated trading.
On the US economic calendar, initial jobless claims and the Philadelphia Fed survey at 1330 BST are among the highlights.
