- FTSE 100 down 0.4% and FTSE 250 down 0.7%
- Shell misses profit expectations, drags energy stocks lower
- BoE holds rates after narrow 5-4 vote
- Software, tech stocks rebound from global rout
Feb 05 (Reuters) - The UK's FTSE 100 declined in choppy trading on Thursday, after paring losses briefly following the Bank of England's decision to hold interest rates after a narrow vote.
The blue-chip index recouped some ground following the decision, but was 0.4% lower by 0123 GMT. The index closed at a record high in the previous session. The domestically focused mid-cap FTSE 250 fell 0.7%.
The BoE held rates after an unexpectedly narrow 5-4 vote, and indicated cuts ahead if an expected fall in inflation proves sustainable, with analysts perceiving the split a more dovish stance than anticipated earlier.
"The bank's close vote to hold rates suggests cuts are not a matter of if, but when... the temporary disinflationary window ahead should offer enough cover to justify one or two more cuts," said George Brown, senior economist at Schroders.
Brown also said that the bank will have to act soon before the opportunity "slams shut" in the second half of 2026.
Precious metal miners declined the most, down 3.2% after gold and silver prices fell sharply in a broader market selloff against a stronger dollar. The index of industrial metal miners also fell 2.2%, tracking copper prices.
Still, banks were the biggest weights, down 1.7%.
On the flip side, technology stocks rebounded from a global rout seen earlier in the week. Analytics firm Relx was up 4%, while London Stock Exchange Group rose 7%.
Political uncertainty also weighed, with concerns mounting over whether Prime Minister Keir Starmer could survive the fallout from his decision to appoint Peter Mandelson as U.S. ambassador despite knowing about his ties to the late sex offender Jeffrey Epstein.
Among individual stocks, Shell slipped 1.2% after the oil major missed fourth-quarter profit expectations, and as oil prices fell over 1% on Thursday.
Ithaca Energy rose 3.9% to the top of the mid-cap index after the oil and gas producer posted strong annual production and profit growth.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Sahal Muhammed and Shailesh Kuber
Source: Reuters