Pound Gains and Rate Decisions Shape UK Stock Market Trends

British stocks are projected to decline for a third consecutive session due to a stronger pound and caution preceding the Bank of England's rate decision. Healthcare and precious metals supported some sectors, while prominent movements were seen in stocks like Ferrexpo and Grainger.

For the third consecutive session on Wednesday, British stocks were poised to fall as a result of a strengthening pound impacting the export-heavy index. Market participants also exhibited caution ahead of the Bank of England's upcoming rate decision.

The FTSE 100 saw a minor dip to 8,565.73 by 10:05 GMT. In contrast, the domestically focussed mid-cap FTSE 250 decreased by 0.3%. The surge of the pound by 0.3% added pressure, nearing a one-month high and influencing the FTSE 100 index negatively.

Gains in the healthcare sector, driven by a notable 5.5% surge in GSK shares following strong quarterly results, acted as buffers against wider market losses. In a similar vein, precious metal miners were the day's top gainers, riding a 2.5% rise alongside gold prices hitting a new high. Meanwhile, Ferrexpo continued to face pressure, falling 8.6% due to legal challenges, whereas Grainger saw a 3.8% improvement, buoyed by rental income growth.

(With inputs from agencies.)