LONDON: British stocks finished lower on Friday, with the blue-chip FTSE 100 set to extend its fall from the previous session, as markets cooled after a record run earlier this month.
Investors were also cautious ahead of the Bank of England’s monetary policy decision next month and the government’s budget later in November.
The FTSE 100 and the domestically focused FTSE 250 ended 0.44 percent and 0.47 percent lower, respectively. Still, both indexes were on track for monthly gains, with the FTSE 100 touching record highs multiple times in October and the midcap index trading close to four-year highs.
Pharmaceuticals, financials and mining stocks were among the top sectoral performers for the month, boosted also by a strong start to the earnings season from companies such as HSBC and GSK.
Signs of inflation staying tame increased bets that the Bank of England could cut interest rates this year, while globally, thawing US-China trade tensions and dovish monetary policy by the US Federal Reserve also aided risk taking.
Investors expect no change to Britain’s benchmark interest rate in November, but are pricing in a cut in December, according to data compiled by LSEG.