UK shares open lower after Fed’s hawkish stance; The Bank of England is on guard

Sept 21 (Reuters) – London stocks opened lower on Thursday as U.S. Treasury yields rose after the Federal Reserve signaled higher interest rates for longer, as investors prepared for the key monetary policy decision from the Bank of England due later in the day.

The blue-chip FTSE 100 index (.FTSE) was down 0.5% at 0710 GMT, while mid-cap stocks (.FTMC) fell 0.4%.

The Federal Reserve held interest rates steady on Wednesday, but rigid a tough monetary policy stance that its officials increasingly believe can succeed in fighting inflation.

Asian stocks followed the lackluster mood of their US peers on Wednesday after the Federal Reserve revised its economic projections.

He Bank of England (BoE) will announce on Thursday whether it will stop a streak of interest rate hikes dating back to December 2021.

A further 1.4% drop in the benchmark index was seen by industrial miners. (.FTNMX551020) as dollar-priced metals fell on a firmer US dollar.

Shares of the IG Group trading platform (IGG.L) and home builders Crest Nicholson (CRST.L) and redrow (RDWL.L) They fell between 3% and 5% as they were listed without dividends.

Next (NXT.L) up 1.3% after clothing retailer increase its full-year earnings outlook for the third time in four months.

JD Sports Fashion (JD.L) rose almost 6% to the top of the FTSE 100 after sportswear retailer forecast a higher annual profit.

The broadest retail index (.FTNMX404010) led sector gains with a jump of almost 1%.

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