London stocks dip at start of earnings-heavy, BoE rate verdict week

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FTSE 100 down 0.2%, FTSE 250 falls 0.3%

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Bank of England rate decision on Thursday

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BP, AstraZeneca (AZN) among others to report earnings this week

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Frasers (SDIPF), Vodafone (VOD) down after rating downgrades

(Updates with closing prices)

Nov 3 (Reuters) -

London's main stock indexes dipped on Monday, dragged down by materials and utilities shares, as investors prepare for a week packed with major corporate earnings and the Bank of England's closely watched interest rate decision.

The blue-chip FTSE 100 edged 0.2% down following its nearly 4% jump in October.

The FTSE 250 midcap index also fell 0.3%, dropping for a sixth straight session.

This week brings a busy earnings calendar with drugmaker AstraZeneca (AZN), oil giant BP, spirits maker Diageo (DEO) and British Airways owner IAG all reporting.

Meanwhile, the BoE is

expected

to pause its rate-cutting cycle on Thursday, though recent softer

inflation

and wage data could strengthen the case for a cut.

"The committee is deeply divided, and we don't expect clear signals on the Bank's next steps," ING analysts said in a note.

Industrial metal miners emerged as Monday's primary laggards, down 2.2%, with Rio Tinto and Glencore (GLCNF) both sliding more than 2%.

The utilities sector also faced pressure, with midcap companies Pennon Group (PEGRF), Renewable Infrastructure Group and Greencoat UK Wind declining between 2.8% and 4.7%.

Frasers (SDIPF) shed 5.4% after the RBC downgraded its rating on the sportswear and fashion retailer to "sector perform" from "outperform".

Vodafone Group (VOD) dropped 5.2% after UBS downgraded its rating on the telecom company to "sell" from "neutral".

On the economic front, British factories

reported their strongest month in a year

in October, though the improvement was largely attributable to Jaguar Land Rover resuming production after a cyberattack, the S&P Global PMI data showed.

Back to stocks, financials, including life insurers and banks, were the biggest boosts.

Ceres Power Holdings (CPWHF) jumped 11.1% after Goldman Sachs added the clean energy technology developer to its European Conviction List - a list of top "Buy" rated stocks in Europe.

Telecoms firm Airtel Africa (AAFRF) extended gains to a fifth straight session after reporting earnings last week, climbing 5.9% on Monday. (Reporting by Shashwat Chauhan and Ragini Mathur in Bengaluru; Editing by Vijay Kishore and Andrew Heavens)