(Reuters) – UK’s blue-chip FTSE 100 index edged up on Monday, helped by energy and metal miners, while investors geared up for a slew of central bank decisions this week, including from the Bank of England.
The exporter-heavy FTSE 100 index rose 0.2% after two straight weeks of losses, though a 1.3% drop in shares of heavyweight AstraZeneca kept gains in check.
The drugmaker agreed to buy biotechnology company EsoBiotec for up to $1 billion.
The mid-cap FTSE 250 index was down 0.2%, dragged by a 21.5% slump in shares of QinetiQ. The defence and security company warned of delays in short-term contracts being awarded in the U.S. and the UK, where new policies are being implemented after recent changes in government.
British stocks have been roiled in the last two weeks, alongside global markets, on concerns U.S. President Donald Trump’s policies will cause a slowdown in the world’s largest economy.
In light of these economic risks, the U.S. Federal Reserve meeting, which concludes on Wednesday, will be parsed for clues on policymakers’ thinking of further interest rate cuts.
Back home, the BoE is expected to keep rates steady on Thursday, while details on whether the central bank sticks to only gradual moves ahead will be key. Data last week showed the UK economy unexpectedly contracted in January.
Next week, Finance Minister Rachel Reeves is set to deliver an update on the public finances, based on an assessment by the Office for Budget Responsibility, Britain’s fiscal watchdog.
Shell was among the biggest boosts to FTSE 100, while precious metal miners firmed 1.3% as safe-haven gold hovered near record levels after hitting the $3,000 an ounce-mark last week. [GOL/]
British insurer Phoenix Group jumped 7% after reporting a better-than-expected rise in full-year adjusted operating profit and total cash, helped by growth in pensions and savings business.
(Reporting by Medha Singh in Bengaluru; Editing by Shilpi Majumdar)
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