LONDON MARKETS: FTSE 100 Slips For Third Day Ahead Of BOE Meeting

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- Most U.K. stocks moved into red territory on Thursday, with miners and oil firms among major decliners, as investors waited for the latest interest-rate decisions from the Bank of England and the European Central Bank.

The FTSE 100 index fell 0.2% to 6,804.49, setting it on track for a third straight day in the red.

Weighing on the London benchmark, shares of BHP Billiton PLC (BHP) dropped 0.9% after RBC Capital Markets shifted its preference within the mining space from BHP to Rio Tinto PLC (RIO).

Rio Tinto shares, however, lost 0.5%, tracking metals prices lower. Among other miners, shares of Anglo American PLC dropped 1.4%, Fresnillo PLC fell 1.1%, and Antofagasta PLC gave up 0.9%.

Oil prices were also declining, adding pressure on the U.K.'s energy majors. Shares of BP PLC (BP) erased 0.3%, and Royal Dutch Shell PLC (RDSB) shaved off 0.7%.

Corporates aside, the main in event in London on Thursday is the BOE's interest-rate decision, due at noon in London, or 7 a.m. Eastern Time. Economists widely expect the central bank to hold fire: to keep its key lending rate at a record low of 0.5% and make no changes to its 375-billion-pound ($628 billion) asset-purchase program.

The Monetary Policy Committee at the BOE has signaled it won't hike rates until 2015, but after a string of solid economic data, some analysts have started to speculate that its first monetary tightening could come as early as the fall of 2014. The pound (GBPUSD) traded at $1.6758 ahead of the rate decision.

The European Central Bank also meets on Thursday, and expectations are for a rate cut and a package of liquidity measures to boost bank lending, spur growth and lift inflation.

Outside the main index in London, shares of ASOS PLC plunged 31% after the online retailer warned full-year profit would fall short of forecasts because of the strong British pound, higher promotional activity and infrastructure investments.

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