(Reuters) -London’s FTSE 100 index edged lower on Monday, dragged down by heavyweight AstraZeneca and a strong sterling, as investors braced for an action-packed week of central bank decisions, including from the Bank of England.
The benchmark FTSE 100 was down 0.12% by 0917 GMT.
Britain’s biggest company AstraZeneca became the latest drugmaker to pull back on its business in the country after it paused a planned 200 million pound ($271.26 million) investment in its Cambridge research centre. Its shares fell 3.4%.
Pharma and biotech stocks led sectoral losses as they declined 2.6%.
Sterling’s strength against the greenback also weighed on export-oriented firms as investors braced for a week of pivotal central bank decisions.
Meanwhile, the BoE is expected to hold interest rates steady on September 18 due to rising inflation and to slow down its 100 billion-pound-a-year bond unwind amid renewed volatility in gilt markets.
The central bank is expected to cut rates once next quarter and again early next year, according to a majority of economists in a Reuters poll.
The spotlight will remain on the U.S. Federal Reserve as it announces its policy decision this week, alongside several other central banks, including those in Japan and Canada.
Additionally, the U.S. and Britain will announce agreements on technology and civil nuclear energy during President Donald Trump’s second state visit this week, as the UK hopes to finalise steel tariffs under a highly anticipated trade deal.
Meanwhile, the domestically focused FTSE 250 gained 0.43% led by AO World’s 11.3% jump after the British electronics retailer laid out plans for its first-ever share buyback and raised the lower end of its annual adjusted pre-tax profit forecast.
Among other individual stocks, Sainsbury hit a more than four-year high, up 5%, after the supermarket group said on Sunday it has terminated talks with Chinese e-commerce giant JD.com over selling the Argos general merchandise retailer.
(Reporting by Sanchayaita Roy in Bengaluru; Editing by Vijay Kishore)
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