The FTSE 100 edged higher on Wednesday, recovering slightly after Tuesday’s decline ended its longest winning streak since August. Investors remained cautious ahead of the Bank of England’s policy announcement on Thursday, limiting the market’s gains.
A steadier showing among global semiconductor stocks overnight, following strong earnings from AMD, provided some support. That helped offset broader uncertainty as investors assessed early gains by Democrats in the U.S. midterm elections.
Marks & Spencer fell 1.74% despite reporting a sharp rise in half-year profitability. The retailer recorded adjusted profit before tax of £403.2 million for the six months to September 26, up from £184.1 million a year earlier and above the analyst consensus of £399 million. The shares’ decline came as traders took profits after recent outperformance, amid caution about UK retailers following Associated British Foods’ warning of continued margin pressure at Primark.
Markets are focused on Thursday’s Monetary Policy Committee decision. Money markets were pricing in an 80% chance of a 25-basis-point increase, which would take Bank Rate to 4%, as policymakers seek to address persistent services inflation and elevated energy costs.
Investors are also watching for signals from Governor Andrew Bailey and the committee on whether the anticipated increase would mark the peak of the current tightening cycle. The article also notes that Chancellor John Healey’s autumn fiscal plans maintain a disciplined spending buffer.
Sources: Investing.com News.