AstraZeneca drags FTSE 100 lower ahead of key central bank decisions
AstraZeneca's pause on a $270 million investment in Britain led to a 3.2% drop in its shares, contributing to a 0.1% decline in the FTSE 100 index. Meanwhile, the FTSE 250 index rose by 0.1%. The Bank of England is expected to maintain interest rates amid inflation concerns. The pound strengthened against the dollar, reaching its highest level since July. Other notable market movements included AO World rising 14% after announcing a share buyback, while Sainsbury hit a four-year high after ending talks with JD.com. S4 Capital's shares fell 21% after a revenue forecast cut.
FTSE 100 down 0.1%, FTSE 250 up 0.1%
AstraZeneca pauses $270 mln investment in Britain, shares fall
Sainsbury hits 4-year high after ending JD.com talks
BoE expected to hold rates steady amid inflation concerns
(Updates with market closing prices)
Sept 15 (Reuters) - London’s FTSE 100 index slipped on Monday, dragged down by heavyweight AstraZeneca and a stronger pound, as investors braced for a busy week of central bank meetings, including the Bank of England.
The blue-chip FTSE 100 (.FTSE) closed down 0.1%, while the midcap FTSE 250 index (.FTMC) edged up 0.1%
AstraZeneca (AZN.L) fell 3.2% after Handelsbanken cut its rating and Reuters reported the drugmaker had paused a planned £200 million ($271.26 million) investment in its Cambridge research site.
The BoE is expected to hold interest rates steady on Thursday amid rising inflation and to slow its £100 billion-a-year bond unwind amid renewed gilt-market volatility. A Reuters poll shows most economists expect one rate cut next quarter and another early next year.
The pound (GBP=D3) rose to its highest level since early July against the dollar. It was last up 0.4% at $1.36.
The spotlight remains on the U.S. Federal Reserve, which sets policy this week, alongside central banks in Japan and Canada.
Additionally, the U.S. and Britain will announce agreements on technology and civil nuclear energy during President Donald Trump’s second state visit this week, as the UK seeks to finalise steel tariffs under a much-anticipated trade deal.
Among other stocks, AO World (AO.L) jumped 14% after the British electronics retailer laid out plans for its first-ever share buyback and raised the lower end of its annual adjusted pre-tax profit forecast.
Sainsbury (SBRY.L) hit a more than four-year high, up 3.5%, after the supermarket group said it had terminated talks with Chinese e-commerce giant JD.com (9618.HK) over selling the Argos general merchandise retailer.
Martin Sorrell’s advertising group S4 Capital (SFOR.L) slumped 21% to a record low after cutting its annual revenue forecast for the second time this year.
