London pre-open: Stocks to edge down ahead of BoE announcement
By Michele Maatouk
Date: Thursday 07 Aug 2025
(Sharecast News) - London stocks were set to edge lower at the open on Thursday as investors eyed the latest policy announcement from the Bank of England, which is widely expected to cut rates by 25 basis points.
The FTSE 100 was called to open around 10 points lower.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "The vote split will be the major talking point - with rising risks to both inflation and the labour market amid Trump tariffs and Reeves' tax hikes.
"Seven out of nine MPC members are expected to vote for a cut, one will likely push for a larger cut, and one is expected to stay put. Another 25bp cut is expected in November, but it will be interesting to see if inflation risks threaten that move.
"Any hawkish surprise - that will play around the language about 'gradual and careful rate cuts' - could help support cable, which is rising above its 100-DMA this morning on US dollar weakness.
"But sterling's weakness is more obvious against the euro, where the EURGBP is pushing toward its highest level since end-2023, driven by the UK's deteriorating economic outlook and rising inflation risks - with little room for more fiscal support, and likely more tax hikes in a country already struggling with the recent fiscal squeeze."
Investors will also be mulling the latest data from Halifax, which showed that house prices rose in July at the fastest monthly pace since the start of the year.
House prices increased 0.4% on the month following a 0.1% rise in June.
On the year, prices rose 2.4% in July following 2.7% growth a month earlier.
The average price of a home stood at £298,237 last month, up from £297,157 in June.
Amanda Bryden, head of mortgages at Halifax, said: "While the national average remains close to a record high, it's worth remembering that prices vary widely across the country depending on a number of factors, not least location and property type.
"Challenges remain for those looking to move up or onto the property ladder. But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving.
"Combined with the more flexible affordability assessments now in place, the result is a housing market that continues to show resilience, with activity levels holding up well.
"We expect house prices to follow a steady path of modest gains through the rest of the year."
In corporate news, InterContinental Hotels posted a solid set of first-half results, underscored by strong trading momentum, record hotel openings, and continued investment in its global estate.
Operating profits from reportable segments rose 13% to $604m, while total revenue climbed 8% to $2.52bn. However, net debt ballooned 21% to $3.36bn.
Harbour Energy narrowed upwards production guidance and unveiled a $100m share buyback as it reported a jump in half-year adjusted earnings.
Guidance was lifted to 460,000-475,000 barrels of oil equivalent a day (kboepd) from 455-475 kboepd, with the divestment of Harbour's Vietnam business more than offset by a strong production performance to date. Adjusted EBITDAX rose to $3.88bn from $1.25bn.
Results were also out from WPP, Serco, Hikma and Deliveroo, among others.
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