FTSE 100 Edges Lower As Commodity Stocks Drag; BoE Decision Awaited

(RTTNews) - U.K. stocks declined on Thursday as metal and crude prices weakened on a stronger dollar amid uncertainty about the Fed's rate trajectory.

The Bank of England will announce its rate decision later today, with most economists expecting the central bank to deliver another 25- bps hike, lifting interest rate to 5.50 percent.

Meanwhile, the U.K. budget deficit widened to the fourth highest level for the month of August but remained below the official estimate, data from the Office for National Statistics revealed.

Public sector net borrowing excluding public sector banks increased GBP 3.5 billion from the previous year to GBP 11.6 billion in August.

This was the fourth biggest August borrowing since records began in 1993.

Nonetheless, the actual August borrowing was better than the GBP 13 billion estimated by the fiscal watchdog, the Office for Budget Responsibility.

The benchmark FTSE 100 was down 41 points, or half a percent, at 7,690 after gaining 0.9 percent on Wednesday.

Miners Anglo American, Antofagasta and Glencore fell 1-2 percent while oil & gas giant BP Plc dropped 1.2 percent and Shell shed 0.7 percent.

CRH edged up slightly. Shares of the building materials giant topped trading on Euronext Dublin from September 20, 2023.

Essentra gained about 1 percent. The maker of plastic and fiber products announced the acquisition of BMP s.r.l or BMP TAPPI, an Italian family-owned manufacturer of protective caps and plugs, for an initial cash consideration of 33.5 million euros.

Next rallied 2.6 percent after the fashion retailer lifted its profit forecast for the third time in recent months.