The FTSE 100 started the week lower ahead of Thursday’s Bank of England interest rate decision. The Bank of England is expected to raise interest rates for the 13th time in a row to between 0.25% and 4.75%.
The weak performance of Asian stocks and a speech by Jerome Powell also added to investors’ worries on Monday.
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Susannah Streeter, head of Money, said: “Concerns about global economic growth have returned as concerns about the Bank of England’s interest rate decision and testimony from Jerome Powell, the world’s most influential central banker, have returned. , investors lack motivation today Monday. Market, Hargreaves Lansdowne.
“The FTSE 100 has fallen behind in European indexes as investors ponder the future direction of interest rates given the persistence of inflation, while concerns persist that China’s economic recovery may lose momentum. It started at a low price.”
Investors will be less worried about the Bank of England’s interest rate decision on Thursday, and more concerned about what direction interest rates may be heading in this year. Some traders expect UK interest rates to be around 6% this year.
At the time of writing, the FTSE 100 was down 0.5% at 7,606.
FTSE 100 fluctuation factors
High beta cyclicals in the FTSE 100 led the decline on Monday, with Ocado down around 3.8%.
Miners were weak on concerns that China’s economic recovery is under threat. Antofagasta and Anglo American both fell more than 1%.
JD Sports has repeatedly proven that it can weather economic uncertainty well, but on Monday, a 6% interest rate risk hit the sportswear group.
Next stock soared during trading after the company said trading in the most recent period had been better than expected. The following stocks were top gainers in the FTSE 100 at the time of writing, up 3.8%.
