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.
More must-reads from MarketWatch:
Could the euro face a short squeeze after the ECB?
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U.K.'s economy is still vulnerable: BOE official
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