Market Tumbles: UK Stocks Slip Amid Rate Cut Speculations

UK stocks saw a decline as investors anticipated interest rate announcements from the US Federal Reserve and the Bank of England. Homebuilder shares dropped significantly, alongside Unilever's dip post-Magnum Ice Cream spinoff. Speculations are rife about potential rate cuts, influenced by mixed US economic data.

The UK stock market experienced a notable decline on Monday, with major indexes slipping as investors braced for potential interest rate decisions from the US Federal Reserve and the Bank of England. The FTSE 100 concluded the session 0.2% lower, continuing its trend of narrow trading ranges.

Homebuilder stocks, which drove the FTSE 350 index down over 3%, faced significant pressures. Barratt Redrow shares fell 2% after a target price reduction by Citigroup. Meanwhile, Unilever shares dipped 2% following the Magnum Ice Cream Company's spinoff in Amsterdam.

Global investors await the Federal Reserve's decision amid policy debates on rate cuts. The CME Group's Fedwatch indicates a 90% chance of a 25-basis-point cut. In the UK, amid a weak job market, the BoE is expected to reduce borrowing costs by 25 basis points next week.