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UK Stocks Focus on Central Bank Policies: FTSE 100 Slightly Down 0.2% with Precious Metals Sector Leading the Way

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UK Stocks Focus on Central Bank Policies: FTSE 100 Slightly Down 0.2% with Precious Metals Sector Leading the Way
On May 6, the UK's FTSE 100 index closed 0.2% lower at 8,143 points. Investors remained cautious ahead of the interest rate decisions of the Federal Reserve and the Bank of England. The mid - cap index, however, bucked the trend and rose 0.6%, achieving a nine - day winning streak. The precious metals sector soared 5.5% boosted by the gold price. Endeavour Mining (+5.2%) and Fresnillo (+4.7%) led the gains among the blue - chip stocks.
The market volatility was mainly disturbed by Trump's tariff policies. After imposing a 100% tariff on imported films, he intends to expand the scope of drug tariffs, which aggravates trade uncertainty. In terms of individual stocks, BP rose 1.4% due to rumors of a potential acquisition by Shell. The share price of the food - delivery platform Deliveroo hit a three - year high, driven by the premium acquisition by DoorDash. Anglo American suffered a 3.1% slump as the possible termination of its Australian coal asset deal came to light.

 

Economic data showed signs of concern. The UK services PMI fell to 49.7 in April, shrinking for the first time since October 2023 and recording the fastest contraction in two years. On the policy front, the Bank of England is expected to launch a 25 - basis - point interest rate cut on Thursday, while the Federal Reserve is expected to maintain its interest rate. In addition, the UK and India have reached the largest free - trade agreement since Brexit, but the agreement fails to hedge against the impact of US tariffs, and structural risks still remain.

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