(Sharecast News) - London stocks were still a little higher by midday on Thursday as investors digested an expected 25 basis point rate cut from the Bank of England.
The FTSE 100 was up 0.2% at 9,797.13, while sterling was 0.1% firmer versus the dollar at 1.3386.
The BoE cut Bank Rate from 4.00% to 3.75% - the lowest level since February 2023 - in line with expectations. The Monetary Policy Committee was split 5-4 to lower rates, with governor Andrew Bailey voting to cut, having opted to keep rates on hold last month.
Alpesh Paleja, deputy economist at the Confederation of British Industry, said: "Today's rate cut came as no surprise. Over the past month we've seen clearer evidence of easing inflation, slower pay growth, a loosening labour market and weak economic growth. Measures in the government's Budget also look unlikely to add to inflationary pressures. Taken together, this seems to have been enough for Governor Andrew Bailey - the swing vote on the MPC - to back a cut.
"But the Committee remains deeply divided on the degree of inflation persistence in the economy, as the narrow vote showed. If inflation continues to fall in line with the Bank's forecasts, we expect one further cut early next year, taking rates to a terminal level of 3.5%. But given the level of disagreement around the table, it wouldn't take much for that final move to be pushed further into 2026."
Earlier, Norway's Norges Bank and Sweden's Riksbank left their policy rates unchanged at 4% and 1.75%, respectively, both as expected.
Still to come, the European Central Bank is expected to maintaining the deposit rate at 2.00% when it announces its decision at 1315 GMT.
In equity markets, Whitbread jumped to the top of the FTSE 100 after activist investor Corvex Management called for a strategic review, having accumulated a 6.05% holding in the Premier Inn owner. It also said it would now seek representation on the board.
Electricals retailer Currys surged as it held annual guidance and reported a jump in half-year profit, with recent trading in line with expectations. The company more than doubled adjusted pre-tax profit for the six months to 1 November to 22m from 9m a year ago.
Elsewhere, BP shares were flat as the oil giant's chief executive stepped down after just two years in the role, to be replaced by the head of Woodside Energy, Meg O'Neill.
In an announcement late on Wednesday, BP confirmed that Murray Auchinloss would leave both the role and board on Thursday. Auchincloss - who formally become chief executive in January 2024, after spending four months as interim head - said: "After more than three decades with BP, now is the right time to hand the reins to a new leader."
O'Neill will be BP's third chief executive in five years.
Derren Nathan, head of equity research at Hargreaves Lansdown, said: "With the sector facing pressure, consolidation is the talk of the town, but BP is most frequently seen as prey rather than the hunter. Rival Shell has distanced itself from takeover speculation, but there are other potential suitors. O'Neill may have a fight on her hands to ensure BP's not sold for a song, and to keep a seat at the table if it were to join forces with a competitor.
"Murray Auchincloss's future has been in the balance ever since activist investor Elliott Investment Management took over a 5% stake in BP. Chairman Helge Lund went earlier in the year and the legacy clear-out is now complete. Investors will now be hoping O'Neill has a firm plan to shore up the balance sheet, improve profitability and define BP's role in the energy transition."
Outside the FTSE 350, Naked Wines shot higher as it said FY26 profits were set to be towards the top end of guidance.
The company had previously guided to adjusted earnings before interest, tax, depreciation and amortisation of between 5.5m and 7.5m.
Naked Wines attributed the improved outlook for adjusted EBITDA to the current success of peak trading across all markets, and its "disciplined approach to all cost areas".
Market Movers
FTSE 100 (UKX) 9,797.13 0.23%
FTSE 250 (MCX) 22,239.71 0.34%
techMARK (TASX) 5,570.21 0.10%
FTSE 100 - Risers
Whitbread (WTB) 2,582.00p 5.60%
Rentokil Initial (RTO) 445.80p 3.03%
Metlen Energy & Metals (MTLN) 41.70p 2.33%
3i Group (III) 3,263.00p 1.56%
M&G (MNG) 281.90p 1.33%
Vodafone Group (VOD) 96.84p 1.23%
Rolls-Royce Holdings (RR.) 1,115.50p 1.23%
Legal & General Group (LGEN) 256.40p 1.22%
Next (NXT) 13,580.00p 1.19%
Land Securities Group (LAND) 603.00p 1.17%
FTSE 100 - Fallers
Burberry Group (BRBY) 1,264.50p -1.63%
DCC (CDI) (DCC) 4,870.00p -1.10%
Flutter Entertainment (DI) (FLTR) 16,310.00p -1.09%
United Utilities Group (UU.) 1,190.00p -1.08%
GSK (GSK) 1,816.00p -0.95%
Convatec Group (CTEC) 240.00p -0.91%
Bunzl (BNZL) 2,158.00p -0.83%
Entain (ENT) 743.00p -0.69%
Games Workshop Group (GAW) 19,420.00p -0.61%
Experian (EXPN) 3,352.00p -0.59%
FTSE 250 - Risers
Currys (CURY) 139.10p 9.87%
Ocado Group (OCDO) 248.50p 3.50%
SSP Group (SSPG) 205.20p 2.65%
Frasers Group (FRAS) 699.50p 2.57%
Energean (ENOG) 879.50p 2.15%
WH Smith (SMWH) 680.00p 2.03%
AEP Plantations (AEP) 1,350.00p 1.89%
Wetherspoon (J.D.) (JDW) 744.00p 1.85%
Hammerson (HMSO) 317.80p 1.79%
Harbour Energy (HBR) 207.80p 1.76%
FTSE 250 - Fallers
SDCL Efficiency Income Trust (SEIT) 50.60p -3.25%
Aston Martin Lagonda Global Holdings (AML) 61.70p -2.45%
Impax Environmental Markets (IEM) 393.00p -1.63%
Future (FUTR) 527.50p -1.59%
Avon Technologies (AVON) 1,738.00p -1.59%
B&M European Value Retail S.A. (DI) (BME) 169.05p -1.46%
Helios Towers (HTWS) 156.80p -1.26%
Playtech (PTEC) 280.50p -1.23%
Dr. Martens (DOCS) 77.75p -1.14%
Utilico Emerging Markets Ltd (DI) (UEM) 267.00p -1.11%
63.45 (0.65%)
0.00