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Stocks in London were lower at midday on Thursday after the Bank of England left interest rates unchanged, as expected, amid an uncertain inflation outlook; meanwhile investors await weekly US jobless data. The FTSE 100 index was down 117.88 points, 1.1%, at 10,390.98. The FTSE 250 was down 172.24 points, 0.7%, at 23,192.49, and the AIM all-share was down 6.95 points, 0.7%, at 800.88. The Cboe UK 100 was down 1.0% at 1,032.79, the Cboe UK 250 was down 1.0% at 19,839.62, and the Cboe small companies was down 0.3% at 18,430.55. The BoE’s Monetary Policy Committee voted 7-2 to keep Bank Rate at 3.75%, with two members preferring a quarter-point increase. The split and the rate decision were in line with the FXStreet-cited consensus. Policymakers noted that consumer price inflation has fallen to 2.8% but said higher energy costs linked to the Middle East conflict are still expected to push inflation higher later this year. While the central bank said the labour market continues to loosen and signs of a weaker economy could help contain inflation pressures, it reiterated that it stands ready to act if necessary to ensure inflation returns sustainably to its 2% target. The pound was quoted at $1.3217 midday Thursday, down from to $1.3393 Wednesday. Against the euro, sterling fell to €1.1527 from €1.1554 a day prior. The euro stood at $1.1464, down from $1.1591. Against the yen, the dollar was trading at JP¥160.93, edging up from JP¥160.25. In European equities on Thursday, the CAC 40 in Paris was marginally lower, while the DAX 40 in Frankfurt was trading marginally higher. Elsewhere in Europe, data showed eurozone construction output continued to improve in April. According to Eurostat, construction production rose 0.6% on-month after a sharply upwardly revised 1.7% increase in March. Annual growth accelerated to 0.9% from 0.2%, with March revised significantly higher from an initially reported decline. Separately, Germany’s ifo institute said the country’s economy is facing a ‘massive energy price shock’ linked to the Middle East conflict but is expected to avoid recession. The institute forecasts German gross domestic product growth of 0.8% in both 2026 and 2027. On the geopolitical front, Iran said its missile programme would not form part of future negotiations with the US, after the two countries signed a memorandum of understanding intended to bring an end to the conflict that began in February. The agreement provides a framework for talks on Iran’s nuclear programme and sanctions relief, but excludes discussion of Tehran’s missile capabilities, a longstanding concern for Washington and Israel. Meanwhile, Switzerland confirmed that ‘initial negotiations’ on implementing a US-Iran memorandum of understanding on ending the Middle East war were planned to take place at a Swiss resort complex on Friday. ‘Currently, the plan remains for the US and Iran, along with the mediators Pakistan and Qatar and other involved countries, to meet tomorrow at the Burgenstock for initial negotiations on the implementation of the agreement,’ the Swiss foreign ministry said. The announcement lifted a veil of uncertainty that had hung over the meeting at the Burgenstock luxury hotel complex near Lucerne in central Switzerland, initially announced on Tuesday. French-flagged LNG tanker the Mraikh left the Gulf through the Strait of Hormuz on Thursday, according to tracking platform MarineTraffic, the first such vessel to make the transit since the start of the Iran conflict. The liquefied natural gas vessel, owned by the Nantes-based subsidiary of Norwegian company Knutsen OAS Shipping, was carrying 76,535 tonnes of LNG, which it loaded in Ras Laffan, Qatar, and was bound for Port Qasim, Pakistan, according to the platform operated by data firm Kpler, which tracks cargo ships. Oil prices extended recent declines following the agreement. Brent crude traded at $78.48 a barrel at midday in London, down from $80.10 late Wednesday. Back in London, Informa led the FTSE 100, up 2.2%. The events, publishing and academic information group reiterated its 2026 earnings outlook and said it expects ‘stronger growth’ in 2027. Informa reported underlying revenue growth of 6.4% in the five months to May 31, supported by continued momentum in both Academic Markets and B2B Live Events. The company said more than $4 billion of revenue has already been traded, booked or is visible for the full year. Intertek rose 1.5% after agreeing to a £9.5 billion takeover by EQT Fund Management. Under the terms of the deal, shareholders will receive 6,107.7p per share, comprising 6,000p in cash plus Intertek’s final dividend of 107.7p. The offer values the testing, inspection and certification company at an enterprise value of around £10.9 billion and represents a 62% premium to its closing share price on April 9, before EQT’s interest became public. Intertek’s board unanimously recommended the offer. Among smaller caps, Nanoco surged 24%. The Runcorn-based quantum dot developer cancelled Friday’s general meeting to approve its proposed delisting from the London market after concluding the resolution was unlikely to achieve the required 75% shareholder backing. Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.6%, the S&P 500 index up 0.9%, and the Nasdaq Composite up 1.6%. Investors are looking ahead to US initial jobless claims data at 1230 GMT, with economists expecting 225,000 new claims compared with 229,000 the previous week. The yield on the US 10-year Treasury was quoted at 4.45%, unchanged from Wednesday. The yield on the US 30-year Treasury narrowed to 4.88% from 4.92%. Gold was quoted at $4,265.50 an ounce at midday Thursday, down sharply from $4,356.32 on Wednesday as easing geopolitical tensions reduced demand for safe-haven assets. Still to come on Thursday’s economic calendar are US weekly jobless claims, the Philadelphia Fed manufacturing index, the Conference Board leading index and EIA natural gas stocks data. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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