FTSE 100 watch: Footsie rises as BoE keeps rates unchanged

The FTSE 100 has climbed higher in London this Thursday as the Bank of England (BoE) kept rates unchanged, in line with expectations. On the corporate front, investors are digesting a string of company updates, including Next’s (LON:NXT) interims which have sent the retailer’s shares lower.

FTSE 100 surges on Thursday

As of 13:07 BST, the Footsie had added 43.69 points to stand 0.60 percent higher at 7,357.74. Sentiment has been upbeat after the BoE policy meeting which saw the central bank keep rates unchanged.

“Absent currency or balance of payments crisis, we just don’t see the Bank of England even considering raising rates anytime soon,” Artur Baluszynski, head of research at Henderson Rowe, commented, as quoted by Proactive Investors, adding that “cuts are increasingly likely due to the prolonged uncertainty around Brexit”.

The analyst further reckons that “considering how sensitive the UK banking system is to softening house prices, we wouldn’t be surprised if the Bank of England gets ahead of the curve”.

Individual blue-chip movers

Next has been among today’s most notable FTSE 100 fallers even as it reported a rise in total sales in the half year ended July. Next’s shares are changing hands 4.54 percent lower at 5,890.00p in early afternoon trade.

Diageo (LON:DGE) meanwhile is underperforming the market as it warned that it “would not be immune from significant changes to global trade policy and continue to monitor this closely”. Diageo’s shares are down by 0.29 percent at 3,260.00p.

Centrica (LON:CNA) has surged as Jefferies lifted its stance on the British Gas owner. Sharecast quoted the broker as pointing to an attractive risk/reward in a broader note on utilities. Centrica’s shares are 1.54 percent up at 73.90p.

The FTSE 100 was 0.60 percent up at 7,358.04 points as of 14:03 BST on Thursday, 19 September 2019.