Geopolitical Jitters And BoE's Caution Dampen FTSE 100

(RTTNews) - A cautious monetary policy stance by the Bank of England as well as escalation in hostilities between Israel and Iran dampened sentiment, dragging down the FTSE 100.

Close on the heels of the Federal Reserve's status quo on rates, the Bank of England also held rates steady. It cited the ongoing global uncertainty as well as persistent inflation to justify the gradual and cautious approach to further monetary policy easing.

The FTSE 100 which had closed at 8,843.47 on Wednesday traded between 8,844.12 and 8,793.14 on Thursday.

The benchmark index of the London Stock Exchange is currently trading at 8,815.01, having slipped 0.32 percent from the previous close.

In the 100-scrip index, only 26 scrips are trading in the overnight green zone. Melrose Industries jumped 4.8 percent. BP, Vodafone Group as well as Pearson added more than 1 percent.

Persimmon declined 3.1 percent. United Utilities Group, Antofagasta, Anglo American, Airtel Africa, 3I Group and Fresnillo, all recorded losses of more than 2 percent.

Amidst safe haven demand bolstered by geopolitical tensions, the U.S. Dollar strengthened. The Dollar's strength dragged down the GBP/USD pair to 1.3426. The sterling ranged between $1.3449 and $1.3383 in the day's trade. The EUR/GBP pair edged up 0.01 percent to 0.8545. The GBP/JPY pair has rallied 0.36 percent to 195.61. Bond yields in the U.K. are currently trading firmly above the flatline. Ten-year bond yields have increased 0.44 percent to 4.5160 percent. The yields ranged between 4.5560 percent and 4.5070 percent over the course of the day. The same was 4.4960 percent a day earlier.