U.K. Stocks Retreat Amid Signs of Tighter Global Monetary PolicyBy
U.K. stocks retreated the most in two months amid signs of potentially tighter monetary policy worldwide.
The FTSE 100 fell 1.2 percent to 6,776.95 at the close of trading, extending its weekly loss to 1.7 percent, after Federal Reserve Bank of Boston President Eric Rosengren signaled increased willingness to raise interest rates. European Central Bank President Mario Draghi yesterday downplayed the need for more stimulus, and his counterpart at the Bank of England indicated on Wednesday that he’s in no rush to boost support.
The FTSE 250 Index of small-cap shares slid 1.6 percent today, after yesterday closing at its highest level since June 2015. The FTSE Small Capitalisation Index Ex Investment Trusts slipped 0.7 percent. The regional Stoxx Europe 600 Index dropped 1.1 percent.
Tullow Oil Plc and Royal Dutch Shell Plc contributed the most to losses among oil companies today as crude trimmed a weekly gain. Burberry Group Plc slid 2.5 percent following a report that it cut prices in Hong Kong and China because of weakness in the British pound.
Bunzl Plc retreated 3.4 percent after HSBC Holdings Plc cut its rating on the distributor of disposable tableware and food packaging to hold from buy. Greene King Plc lost 6.1 percent after the British pub owner warned on potentially tougher trading ahead.
J D Wetherspoon Plc climbed 2.4 percent after the U.K. pub chain reported better-than-expected earnings. Sports Direct International Plc rose 2.1 percent after saying it will buy back about 5 percent of its shares.
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