Global shares dip as Bank of England chief rules out rate cuts for ‘foreseeable’
The FTSE 100 fell 27.5 points, or 0.37%, to close at 7,460.7.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Global stocks have started the week on the back foot, with a boost for property portal Rightmove failing to lift the FTSE 100 into positive territory.
The UK’s top share index was trading lower on Monday, with healthcare and gambling stocks among those slipping back.
The FTSE 100 fell 27.5 points, or 0.37%, to close at 7,460.7.
The slow start to the week came as the governor of the Bank of England strengthened his stance that it is too early for policymakers to be thinking about cutting UK interest rates.
Andrew Bailey told Chronicle Live that he has recently resisted discussions about cutting rates in the “foreseeable future” because it is “too soon to have that discussion”.
Reducing inflation from above 4% to the 2% target is “hard work”, the Bank chief said.
There's still a way to go and as Bailey highlighted, getting from peak to now is likely to be much easier than from here to 2%
Craig Erlam, a senior market analyst for Oanda, said analysts will be kept on their toes by a slew of central bank speakers making appearances throughout the week.
He said: “Bank of England governor Bailey got the week off to a start on that front, pushing back against expectations for rate cuts from the second quarter, claiming he doesn’t expect any for the ‘foreseeable future’.
“A vague commitment as ever but all we can expect from policymakers for now. There’s still a way to go and as Bailey highlighted, getting from peak to now is likely to be much easier than from here to 2%.”
The subdued mood from investors was felt outside the UK, with Germany’s Dax moving 0.39% lower and France’s Cac 40 down 0.37% at close.
In the US, the S&P 500 was down about 0.1% and Dow Jones down 0.2% by the time European markets closed.
The pound was about flat against the US dollar at 1.261, and was up by 0.1% against the euro to 1.153.
The price of Brent crude oil was down 0.51% to 80.17 US dollars per barrel.
In company news, Rightmove leapt to the top of the FTSE 100 after the online estate agent raised a key sales target for the full year having seen resilient demand from buyers.
The firm did not deny that the housing market has been “uncertain”, but said its business model is stable throughout “all phases of the property market cycle”.
The sliver of good news for the sector gave its share price a boost, closing 4.8% higher on Monday.
Metro Bank’s shares also moved higher after it said its shareholders had overwhelmingly voted to approve its funding package, with more than 90% in favour of the deal.
It means it can proceed with a planned equity raise, which will see Colombian businessman Jaime Gilinski Bacal become a majority shareholder with a 53% stake.
It is also refinancing £600 million in debt as part of the approved deal. Shares in Metro Bank were 4.9% higher at close.
The biggest risers on the FTSE 100 were Rightmove, up 24.4p to 533.6p, Fresnillo, up 22.8p to 551.4p, Howden Joinery Group, up 14p to 717.8p, Admiral Group, up 45p to 2,709p, and RS Group, up 11.4p to 767.4p.
The biggest fallers on the FTSE 100 were St James’s Place, down 16p to 645.8p, AstraZeneca, down 204p to 9,976p, BAE Systems, down 18.5p to 1,049.5p, IAG, down 2.45p to 150.85p, and Flutter Entertainment, down 200p to 1,2420p.