Stocks drop after BoE holds rates

The blue-chip index FTSE 100 dropped 2.4% and the GBP/USD added 0.9% to 1.3380

UK stocks extended losses on Thursday after the Bank of England held rates at 3.75% as expected, while the pound edged higher and oil prices jumped amid escalating Middle East tensions.

The blue-chip index FTSE 100 dropped 2.4% and the GBP/USD added 0.9% to 1.3380.

DAX index in Germany shed 2.8%, the CAC 40 in France declined 2%.

The ECB is widely expected to keep interest rates on hold on Thursday, in line with decisions from BoE and several other central banks on Wednesday. This would extend a broader pause in policy moves among global policymakers.

By 12:49 GMT, Brent crude futures had soared 5.3% to $113.09 per barrel. Meanwhile, European natural gas prices also climbed sharply, with the Dutch TTF benchmark for next-day delivery jumping 19.4%.

LSL Property Services on Thursday reported fiscal year 2025 underlying operating profit of £32.6 million, meeting analyst expectations of £32.2 million, while maintaining its outlook for additional profit growth in fiscal 2026.

DFS Furniture plc maintained its full-year profit guidance of £43-50 million despite reporting some softening in customer footfall linked to adverse weather conditions since the half-year period ended.

SGL Carbon SE reported weak fourth-quarter results on Thursday but issued fiscal year 2026 adjusted EBITDA guidance with a midpoint standing approximately 8% above consensus.

Fourth-quarter 2025 sales reached €197.3 million ($228.27 million), down 19.3% year-over-year and 1% below the consensus estimate of €199 million ($230.23 million). The decline primarily reflected the restructuring of the Carbon Fibers business unit, which has now been completed, as well as persistently weak demand in key end markets including semiconductors and automotive.