FTSE 100 Slips as Investors Await Central Bank Decisions and Manufacturing Growth Forecast is Cut

The FTSE 100 index opened with a 0.1% decline, while the FTSE 250 saw a 0.2% drop as investors eagerly anticipated interest rate decisions from the U.S. Federal Reserve and the Bank of England. Market participants are hopeful for an end to the monetary tightening cycle and are also awaiting key domestic inflation data later in the week.

In addition to the central bank decisions, the main manufacturing trade body in the UK slashed its growth forecast for the sector this year and next. This revision was based on a significant reduction in factory output and economic uncertainty. The manufacturing sector plays a crucial role in the UK economy, and any weakening in its growth can have an impact on investor sentiment.

Despite the overall market decline, shares of Phoenix Group rose by 1.6%. The life insurer stated that it expects its cash generation for 2023 to be at the upper end of its forecast range, which boosted investor confidence in the company.

Furthermore, Mondi Plc experienced a significant jump of 4.9% after agreeing to sell its largest plant in Russia to a unit of Sezar Group for 80 billion roubles ($825.7 million) in cash. This transaction will allow Mondi to streamline its operations and focus on its core business activities.

As investors await the central bank decisions and economic data, market sentiment is likely to be influenced by these factors. The outcome of the interest rate decisions and manufacturing growth forecast will provide insights into the direction of the economy and may impact investment decisions in the near term.

– Reuters: https://www.reuters.com/article/uk-britain-stocks/ftse-100-slips-as-investors-eye-central-bank-decisions-cuts-sector-growth-view-idUSL3N1LV1G4