FX.co ★ FTSE 100 Cuts Gains after BoE

The FTSE 100 pared its earlier gains to slightly above the flatline at 8,580 on Thursday, lagging behind other European indices. This performance came as investors evaluated the Bank of England's recent rate cut and the prospects for a trade agreement with the United States. As anticipated, the BoE reduced its Bank Rate by 25 basis points to 4.25%. Despite this standard measure, two members of the Monetary Policy Committee favored maintaining rates, overshadowing those advocating for a more significant cut. This indicates a potentially prudent stance from the Bank regarding future rate reductions. Concurrently, US and UK officials hinted at the revelation of a trade agreement later that day, aiming to sidestep the hefty tariffs previously enacted by US President Trump. On the corporate front, both IMI and Mondi saw their shares rise over 4% following the release of their first-quarter performance reports. Additionally, Next's stock gained almost 1% after exceeding forecasts with an 11.4% increase in full-price sales for Q1 and uplifting its financial projections. In contrast, Centrica's shares plummeted 7% due to a trading update that highlighted weaker performance in its residential energy division.