London stocks slip on concerns over higher-for-longer rates; AstraZeneca gains

Construction and materials stocks fell 2.2%. AstraZeneca, meanwhile, climbed more than 1% after the drug maker said its experimental precision drug had slowed the progression of breast cancer in a late-stage trial.

UK stocks opened slightly lower on Friday, as investors fretted over indications of higher-for-longer interest rates from major central banks a day after the Bank of England (BoE) paused rate hikes.

The exporter-heavy FTSE 100 slipped 0.1% in early trade in broad-based declines, while the mid-cap FTSE 250 was down 0.2%. Investors have been worried after the BoE and the U.S. Federal Reserve held interest rates steady this week, but signalled elevated interest rates for longer.

Goldman Sachs said it expected the BoE to hold its peak policy rate at 5.25% in November and maintain it at this level until the third quarter of 2024. Construction and materials stocks fell 2.2%.

AstraZeneca, meanwhile, climbed more than 1% after the drug maker said its experimental precision drug had slowed the progression of breast cancer in a late-stage trial. The broader pharma and biotech index gained 1%.

Phoenix Group fell 3.4% to the bottom of FTSE 100, after the Financial Times reported the life insurer has bought stake in Hambro Perks, while brokerage J.P. Morgan downgraded the stock. British retail sales partially recovered in August after a rainy July washout, data showed, adding to signs that the country's consumers were mostly coping with the cost-of-living squeeze.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)