The FTSE 100 index saw a downturn following its record high on Tuesday, as declines in AstraZeneca shares and energy stocks overshadowed the gains made by miners. Investors are exercising caution in anticipation of the Bank of England’s policy meeting scheduled for later this week. The blue-chip FTSE 100 index was down 0.2% at 1039 after reaching a record high of 10,373.28 points during the session. AstraZeneca shares fell by 1.5% following the rejection by U.S. regulators of its proposal for a more user-friendly version of the lupus medication Saphnelo, which has delayed the potential approval timeline to the first half of 2026.
A selloff in commodity-linked stocks over the past two sessions has affected the commodity-heavy FTSE 100 index, as leveraged investors were forced to unwind their speculative positions following the nomination of Kevin Warsh, a policy hawk, as the next U.S. Federal Reserve chair. Endeavour Mining and Fresnillo are among the top gainers on the benchmark index, rising 5% and 4.3%, respectively, as gold experienced its largest one-day rally since 2008 following a two-session decline. The precious-metal miners index climbed 4.5%, effectively ending a three-day losing streak.
Other London-listed miners experienced an uptick, with Anglo American and Antofagasta rising by 4% and 3.5% respectively, as copper prices increased following supply concerns and positive demand prospects that bolstered support for the red metal. Energy stocks Shell and BP experienced declines of 1.5% and 1.7%, respectively, following a 1% drop in oil prices. This represents the second successive decline as market participants evaluated the prospects for a reduction in U.S.-Iran tensions. The domestically focused mid-cap index was up 0.1%.
In a week characterized by pivotal global central bank meetings, the Bank of England is expected to keep its benchmark borrowing costs steady at 3.75% this Thursday. In a separate development, UK grocery inflation has decreased to 4.0% in the four weeks leading up to January 25, marking its lowest point since April, according to data. This decline offers a measure of relief to consumers, as the Bank of England continues to monitor food prices for signs of broader inflationary trends.