PrintUK equities slide as Mideast war escalates; BoE decision in focus
BY Reuters | ECONOMIC | 06:29 AM EDT(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window)
* FTSE 100 down 1.9%
* FTSE 250 hits near 4-month low
* Energy stocks hit record high as oil prices surge
* Bank of England expected to pause rate cuts amid inflation concerns
* HSBC
March 19 (Reuters) - London's main indexes fell sharply on Thursday as an intensifying conflict in the Middle East sapped risk appetite, with investors also keeping a close eye on the Bank of England's monetary policy verdict.
The blue-chip FTSE 100 fell 1.9% by 1020 GMT.
Meanwhile the mid-cap FTSE 250 was down 2%, hitting its lowest level since November last year.
The energy sector rose 0.9% to a record high, as oil prices jumped after Iran attacked energy facilities across the Middle East following Israel's strike on its South Pars gas field, a major escalation in the war.
Most of the other major sectors were trading in the red,
with metal miners and banks down
7.2% and 3.7% respectively, making them the day's worst
performers.
HSBC
Adding to the cautious mood, investors are awaiting the Bank
of England's policy decision at 1200 GMT.
The central bank now looks set to hold off on an interest rate
cut that had seemed all but certain before the Middle East
conflict erupted, and is expected to strike a vague tone on its
next steps as it monitors the potential inflationary fallout
from the war.
Meanwhile, British wages rose at their slowest pace since late
2020 in the three months to January, according to official data
which also suggested a weakening in employment might have
bottomed out before the start of the war in the Middle East.
Among other movers, IG Group
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Nivedita Bhattacharjee)
