Markets fall as traders eye Bank rates decision
Tesco, Ocado and Sainsbury’s were some of the worst performers on the index.
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Your support makes all the difference.Some of the UK’s biggest supermarkets helped lead the FTSE 100 lower on Wednesday as markets hold their breath in the run-up to what could be the last interest rate hike for a while.
The FTSE closed down 0.3%, or 22.76 points, ending the day at 7,741.33.
Tesco, Ocado and Sainsbury’s were some of the worst performers on the index.
It comes ahead of the Bank of England’s decision on interest rates on Thursday. Decision makers on the Monetary Policy Committee (MPC) are widely expected to hike rates again, for what would be the 12th time.
It could be the last time they put up rates, most likely from 4.25% to 4.5%. But some in the market are predicting that there could be another hike in the future to help control still-high levels of inflation.
It was a fairly quiet day on markets ahead of the decision. National Express decided to change its name, the boss of Wetherspoons lashed out at politicians, and Capita said that a recent cyber attack would cost it £20 million.
European markets fared slightly worse than their London counterpart on Wednesday. The German Dax index closed down 0.4%, while France’s Cac 40 dropped 0.5%.
In the US, the S&P 500 was up 0.2% while the Dow Jones had gained 0.3% shortly after markets closed in Europe.
The pound dropped around 0.1% against two major rival currencies at 1.261 dollars or 1.14 euros.
In company news, Asos announced a major half-year loss on Wednesday, sending its shares plummeting.
Losses ballooned from less than £16 million a year ago to more than £290 million in the first six months of the financial year.
The news was disastrous for the online retailer’s shares, which lost 22% of their value during the day.
Shares in Tui also fell despite the travel group revealing a one billion euro surge in revenue to 3.1 billion (£2.7 billion) in the first quarter.
Shares were down 3.2%.
Capita’s shares reduced in value by 3.6% as it revealed the cost of last month’s cyberattack could reach between £15 million and £20 million.
Pub chain Wetherspoons said that its like-for-like sales had increased by 12.2% in the three months to the end of April. Shares rose 5%.
The biggest risers on the FTSE 100 were Melrose Industries, up 20.3p to 444.7p, Rolls-Royce, up 4.65p to 156.3p, Johnson Matthey, up 44.5p to 1,954p, RS Group, up 18p to 880.2p, and Unite Group, up 14.5p to 923p.
The biggest fallers on the FTSE 100 were Ocado, down 20.0p to 455p, Pearson, down 29.4p to 797.2p, Intercontinental Hotels Group, down 174.0p to 5,318p, Tesco, down 6.7p to 277.9p, and Admiral Group, down 47.0p to 2,175p.