(Reuters) -UK’s main stock indices were little changed on Thursday as sterling steadied near multi-month lows, with traders pausing for breath ahead of the Bank of England’s interest rate call.
The central bank is widely expected to keep rates at 4% when it announces its decision at 1200 GMT, and its tone will be crucial to guiding sentiment as traders navigate the final stretch of the year.
Still, a shift in stance from Goldman Sachs, which last week said it now expects a rate cut after softer inflation and wage data, has stirred some speculation.
The blue-chip FTSE 100 index was 0.3% lower, retreating from a record high in the previous session, as gains in financials and metal miners were offset by a selloff in energy and pharma. The midcap index was flat.
Oil and gas companies’ shares lost ground despite a rise in oil prices, with BP ticking 0.7% lower and Shell down 0.4%.
Shares of Healthcare and medical equipment and services also slipped, with GSK plc down 0.6%. Smith & Nephew PLC plunged 10% after it missed market expectations for quarterly revenue due to weakness in its U.S. knee implants business.
Trading in AstraZeneca was choppy, with shares last trading 0.2% lower. The pharma giant reported better-than-expected third-quarter profit on Thursday, boosted by strong sales in cancer and heart-related drugs.
Financials led the gainers, with HSBC Holdings, Standard Chartered and Barclays PLC up 0.9%, 1.1% and 1.5%, respectively.
The Financial Times reported that Chancellor Rachel Reeves was set to spare them from a punitive budget tax raid.
Metal miners climbed as copper and iron ore snapped a four-day losing streak. Rio Tinto rose 0.3% and Glencore PLC jumped 2.2%.
Among consumer staples, Unilever dropped 1.9%. Diageo fell 5% after trimming its 2026 sales and profit forecast.
(Reporting by Utkarsh Tushar Hathi; Editing by Saumyadeb Chakrabarty)
