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London stocks opened lower on Thursday as U.S. Treasury yields climbed after the Federal Reserve signalled elevated interest rates for longer, while investors braced for the Bank of England's key monetary policy decision due later in the day.
The blue-chip FTSE 100 index was down 0.5% by 0710 GMT, while mid-cap stocks dipped 0.4%.
The Fed held its interest rates steady on Wednesday, but stiffened a hawkish monetary policy stance that its officials increasingly believe can succeed in combating inflation.
Asian stocks tracked the lacklustre mood in U.S. peers on Wednesday after the Fed revised its economic projections.
The Bank of England (BoE) on Thursday will announce whether it is halting a run of interest rate hikes that stretches back to December 2021.
Further pulling down the benchmark index was a 1.4% slump in industrial miners as greenback-priced metals declined on a firmer U.S. dollar.
Shares of trading platform IG Group and homebuilders Crest Nicholson and Redrow were down between 3% and 5% as they traded ex-dividend.
Next rose 1.3% after the clothing retailer raised its full-year profit outlook for the third time in four months.
JD Sports Fashion climbed nearly 6% to the top of FTSE 100 after the sportswear retailer forecast a higher annual profit.
The broader retailers' index led the sectoral gains with a nearly 1% jump.
(Reporting by Siddarth S in Bengaluru; Editing by Sherry Jacob-Phillips)