U.K. Stocks Fall for First Time This Week; Morrison Shares Slideby
U.K. stocks snapped three days of gains as slumping shares of Anglo American Plc and Wm Morrison Supermarkets Plc weighed on the FTSE 100 Index.
Bank of England governor Mark Carney said today that Britons should be ready for a rate increase in 2016. After he presented new forecasts at a press conference earlier, forward contracts fluctuated, with some showing the first quarter-point rate move will come as late as the first quarter of 2017.
Property shares gained on speculation rates would stay lower for longer, with British Land Company Plc, Barratt Developments Plc and Hammerson Plc each adding at least 1.9 percent.
AstraZeneca Plc rallied 2.9 percent after raising its profit and sales forecast for the year. RSA Insurance Group Plc gained after saying it is “more than on track” to meet its full-year financial targets.
Morrison fell 5.6 percent after reporting a fifteenth-straight drop in quarterly sales. Anglo American tumbled 7.7 percent.
The FTSE 100 fell 0.8 percent to 6,364.9 at the close in London. U.K.’s benchmark gauge has risen this week, shored up by Federal Reserve Chair Janet Yellen’s comments that a December rate hike is a possibility if economic data continued to point to growth and firmer consumer prices. Last month, the benchmark posted its biggest monthly rally since 2013.
The broader FTSE All-Share Index lost 0.7 percent today, while Ireland’s ISEQ Index fell 0.1 percent.