-- British equities closed in the red on Monday, with the FTSE 100 down 0.56%, as investors remained cautious ahead of upcoming corporate earnings and key central bank rate decisions, including from the Bank of England.
"Even if recent data has come in quite solid, the UK labour market is much cooler and the starting point for the Bank Rate at 3.75% is much higher compared to 2022. Hiking rates will have to be weighed against a considerable risk of exacerbating a looming economic contraction. We think it is most likely the BoE will remain sidelined for the foreseeable future," Danske Bank said.
Meanwhile, the Confederation of British Industry distributive trades survey's retail sales balance fell to -68% in April from -52% in March. The consensus estimate was -42% for the month, according to Investing.com.
"With the economic impact of the Iran conflict becoming clearer, firms will be looking to government to recognise that easing cost of living pressures depends on tackling the cost of doing business. For the distribution sector, that means securing appropriate landing zones on the Employment Rights Act, delivering meaningful business rates reform, and exploring further how non-energy policy costs can be removed from electricity bills," CBI lead economist Martin Sartorius said.
In corporate news, GSK (GSK.L), down 0.20%, had a busy start to the new week. Aside from completing a license agreement for its cholestatic pruritus treatment, linerixibat, with Alfasigma, the British pharmaceutical giant also secured breakthrough therapy and priority medicines designations in the US and Europe, respectively, for its once-monthly investigational liver therapy, efimosfermin.
Meanwhile, the Delaware Chancery Court in the US granted the motion to dismiss filed by AnaptysBio against GSK subsidiary Tesaro, with the latter affirming its view that the anticipatory breach claim is entirely without merit.