LONDON: European stocks diverged at the open on Thursday, but London slid before an expected half-point interest rate hike from the Bank of England to tackle soaring inflation.
London’s benchmark FTSE 100 index declined 0.1 percent to 7,435.02 points, ahead of a BoE rate call at 1100 GMT.
On the upside, the Paris CAC 40 won 0.2 percent to 6,487.53 points and Frankfurt’s DAX rose 0.4 percent to 13,640.24 compared with Wednesday’s closing levels.
“All eyes (are) on (the) BoE to see if follows other central banks and delivers a larger hike,” said MUFG analyst Lee Hardman.
Risk-off mood hits European shares; U.S.-China tensions weigh
The BoE is tipped by most economists to lift its key interest rate by 0.50 percentage points to 1.75 percent, alongside its latest inflation and growth forecasts.
Such a move would follow large hikes last month by both the US Federal Reserve and the European Central Bank.
Global inflation has soared this year on spiking energy costs, following key gas and oil producer Russia’s invasion of Ukraine.
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