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London stocks fall as energy stocks weigh

Traders at BGC, a global brokerage in London’s Canary Wharf financial centre, react to the opening of European stock markets early June 24, 2016 after Britain voted to leave the European Union during the EU BREXIT referendum. REUTERS/Russell Boyce

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  • FTSE 100 still heading for weekly gains
  • LSE is growing, says Refinitiv, costs and savings are on track
  • FTSE 100 down 0.1%, FTSE 250 up 0.1%

Aug 5 (Reuters) – British stocks fell on Friday, with energy stocks leading the declines, a day after the Bank of England raised interest rates to the highest in 27 years.

The FTSE 100 index (.FTSE) fell 0.1%, while the mid-cap index (.FTMC) edged up 0.1%.

The FTSE 100 index ended flat on Thursday after the UK central bank’s monetary policy committee raised its discount rate by half a percentage point to 1.75%, the highest level since late 2008 . Read more

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UK stocks initially reacted positively to the move, which was seen as an effort by the BoE to contain inflation in the UK economy and as the pound weakened, but fears took hold after that the central bank has warned of an impending long recession.

“Central banks generally tend to be soft on bad news, but the candor behind the BoE’s economic assessment was as grim as it gets,” said Michael Hewson, chief market analyst at CMC Markets. UK.

Yet London stocks have performed better than their global counterparts so far this year, with the FTSE 100 index now on track for its third consecutive week of gains.

Oil majors Shell Plc (SHEL.L) and BP Plc fell more than 1% each, weighing the most on Britain’s blue chip index.

WPP (WPP.L), the world’s largest advertising group, raised its outlook for full-year net sales, but its shares fell 7.6% in early trading.

The London Stock Exchange Group (LSEG.L) rose 3.5% after it said its cost and savings targets for integrating its $27 billion acquisition of data firm Refinitiv remained unchanged and that he was launching a 750 million pound ($910.65 million) share buyback. Read more

Investors around the world are now awaiting the release of US jobs data, to see if the Federal Reserve’s aggressive pace of rate hikes slows growth in the world’s largest economy.

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Reporting by Shreyashi Sanyal in Bengaluru; Editing by Uttaresh V and Shailesh Kuber

Our standards: The Thomson Reuters Trust Principles.

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