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UPDATE 2-FTSE 100 rises on dovish BoE; miners, pharma stocks lead gains

Thu, 24th Jun 2021 09:58

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)

* BoE maintains loose monetary policy

* AstraZeneca, Anglo American top boosts to FTSE 100

* Carnival falls after $2 billion quarterly loss

* FTSE 100 up 0.6%, FTSE 250 off 0.5%
(Updates to close)

By Shashank Nayar and Amal S

June 24 (Reuters) - Britain's FTSE 100 rose on Thursday, led
by mining and healthcare-related stocks as the Bank of England
kept its crisis-era monetary policy unchanged, while cruise
operator Carnival fell after a quarterly loss of over $2
billion.

The blue-chip FTSE 100 ended up 0.6%, with drugmaker
AstraZeneca and miners Anglo American, Rio Tinto
and BHP Group providing the biggest boost to
the index.

The mid-cap FTSE 250, on the other hand, dropped
0.5% following disappointing half-yearly results from
engineering and consultancy company Wood Plc that sent
its own shares tumbling 8.9% to an over one-year low.

The export-heavy FTSE 100 is on course to post its fifth
straight monthly gain on the back of a steady economic recovery,
but recent signs of a jump in inflation and a hawkish tone by
U.S. Fed towards monetary policies have sparked fears central
banks could raise interest rates sooner than expected.

On Thursday, the Bank of England kept its benchmark interest
rate at an all-time low of 0.1%, but warned inflation would
surpass 3%, well above its target of 2%, as the economy reopens
from coronavirus-related lockdowns.

"As inflation prints continue to come in higher than the
central bank's forecasts anticipate, pressure will increasingly
grow to begin on its path to more normal policy," said Ambrose
Crofton, global market strategist at J.P. Morgan Asset
Management.

"All this suggests the bank may end up having to withdraw
support more quickly than its international peers."

Base and precious metal
miners, rose 1.7% and 0.1%, respectively and were the top
sectoral gainers.

A rally in homebuilders fizzled out despite
upbeat half-yearly earnings from Crest Nicholson Holdings Plc
.

Carnival Corp fell 1.5% after the cruise operator
reported a quarterly loss of more than $2 billion as a
15-month-long suspension of voyages due to the COVID-19 pandemic
hammered its business.

(Reporting by Shashank Nayar and Amal S in Bengaluru; Editing
by Subhranshu Sahu, Uttaresh.V and Jonathan Oatis)

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