The UK’s FTSE 100 dipped on Thursday, influenced by shares of Shell after the oil giant announced quarterly profits that fell short of expectations, as investors looked ahead to the Bank of England’s policy decision later in the day. The blue-chip index was down 0.4% at 1005, following a record high close yesterday. Meanwhile, the domestically focused mid-cap index was down 0.7%. Shell experienced a 1% decline following the announcement of its fourth-quarter net profit, which stood at 3.3 billion dollars. This figure did not meet expectations and showed an 11% decline compared to the prior year, due to reduced oil prices.

Miners listed in London put strain on the index as gold and silver prices saw a notable drop during a wider market selloff, driven by a stronger dollar. The group of precious metal miners fell by 2.5%, whereas the industrial metal miners experienced a drop of 1.4%. Meanwhile, the BoE is expected to keep interest rates steady at 3.75% later today and signal a careful approach regarding any possible future reductions. Even with the deceleration in growth, Britain still holds the highest borrowing costs among the G7 nations.

Investors will be paying close attention to any updates regarding the BoE’s guidance after December’s tight 5-4 decision to reduce. Technology shares saw a rebound after a worldwide decline noted earlier in the week. Analytics firm Relx experienced an increase of 5%, while the London Stock Exchange Group saw a rise of 7.2%. Political uncertainty influenced sentiment, leading to a rise in British borrowing costs on Thursday.

Concerns were growing about British Prime Minister Keir Starmer’s capacity to handle the fallout from his decision to appoint Peter Mandelson as U.S. ambassador, even though he was aware of Mandelson’s ties to Jeffrey Epstein.
Playtech rose 3.4% to the top of the mid-cap index after the gambling technology firm upgraded its outlook and stated it was entering 2026 with strong momentum. Ithaca Energy experienced a 4.5% increase following the announcement of robust annual production and profit growth from the oil and gas producer.