London-listed shares dove on Thursday as the Bank of England forecast a slower-than-expected rebound from the COVID-19 pandemic, while Glencore tumbled after scrapping its dividend to pay down debt.
The miner (GLEN.L) fell 4.6% as it also booked a $3.2 billion (2.44 billion pounds) impairment charge, driving the FTSE 100 .FTSE down 1.2%.
ITV (ITV.L), Britain’s biggest free-to-air commercial broadcaster, was also among the biggest decliners on the FTSE 100 after it posted a 50% drop in first-half adjusted earnings.
The mid-cap FTSE 250 .FTMC was down 0.7%, with industrial, real estate and financial stocks among the biggest drags.
The Bank of England said on Thursday the British economy would not recover its end-2019 size until the end of next year, later than its earlier estimate of a recovery by the second half of 2021. In its policy decision, the central bank made no changes to its key interest rate or its bond-buying programme.
European shares dipped on Thursday as forecasts of a slower post-pandemic economic rebound in the UK hit London stock markets, while disappointing quarterly updates from Glencore and AXA weighed on broader sentiment.
The pan-European STOXX 600 index slipped 0.4% by 0710 GMT, with London's FTSE 100 .FTSE falling 1.1%.
The more internationally-focussed UK stocks took a hit as sterling rose after the Bank of England kept rates unchanged and warned of possible risks from taking interest rates below zero. [GBP/]
Mining group Glencore (GLEN.L) dropped 4.3% after it decided to scrap its dividend to focus on lowering debtas the COVID-19 pandemic forced it to book a $3.2 billion impairment charge.
French insurer AXA (AXAF.PA) slipped 2.6% after it dropped its 2020 earnings target and said it would not make additional payouts to shareholders in the fourth quarter.
On the bright side, Adidas (ADSGn.DE) gained 3.5% as it forecast a rebound in profits in the third quarter and Lufthansa (LHAG.DE) jumped 4.8% even as said it does not expect air travel demand to return to pre-crisis levels before 2024.