U.K. Shares Reverse Gains as Banks Decline While Miners Rallyby
U.K. stocks erased advances, with lenders falling, as the Bank of England kept its key interest rate at a record low and said uncertainty stemming from Britain’s referendum on its European Union membership may hold back investment and economic growth.
HSBC Holdings Plc, Barclays Plc and Royal Bank of Scotland Group Plc dropped more than 1.5 percent, tracking declines among Europe’s banks. InterContinental Hotels Group Plc lost 2 percent after Morgan Stanley cut its rating on the shares, saying it may be left out of a round of mergers and acquisitions. Anglo American Plc, Glencore Plc and BHP Billiton Ltd. jumped more than 7 percent.
The FTSE 100 Index dropped 0.2 percent at 1:24 p.m. in London, reversing an gain of as much as 0.7 percent. BOE policy makers unanimously agreed to maintain the benchmark rate at 0.5 percent, where it’s been for seven years, and said uncertainty stemming from Britain’s referendum on its European Union membership may hold back investment and economic growth.
The FTSE 100 is heading for a weekly gain of 0.3 percent, which would be a fourth advance in five. The broader FTSE All-Share Index also fell on Thursday, and Ireland’s ISEQ Index lost 0.6 percent.