Oil Firms Lead U.K. Stocks Lower; Banks Rise

Oil firms drove U.K. stocks slightly lower on Thursday, with investors waiting for the Bank of England’s interest-rate decision later in the day.

The FTSE 100 index  shed 0.2% to 5,811.28, partly erasing Wednesday’s gains when the benchmark closed at the highest level since Sept. 25.

Among notable movers, steelmaker and miner Evraz PLC  dropped 3.4%, as it agreed to buy an indirect controlling interest in OJSC Raspadskaya, a Russian producer of coking coal, and its subsidiaries. In the acquisition, Evraz said it will issue 132.7 million new shares, representing 9.9% of the existing share capital. See: Evraz to buy controlling stake in Raspadskaya

Pointing in the other direction, ingredients firm Tate & Lyle PLC  rose 2.7%, after Credit Suisse lifted the stock to outperform from neutral.

For the broader U.K. market, banks were rising ahead of the BOE announcing its latest policy stance at 12:00 London time, 7 a.m. Eastern. The bank is widely expected to keep its key interest rate at a record-low 0.5% and make no changes to its bond-buying program.

Royal Bank of Scotland Group PLC    picked up 1.2%, Standard Chartered PLC  gained 0.8% and HSBC Holdings PLC     added 0.6%.

GlaxoSmithKline PLC   added 0.6%. The drug maker said its Shionogi-ViiV Healthcare LLC joint venture has completed the initial clinical registration package for dolutegravir, an HIV drug.

Oil firms, however, added pressure in London. BG Group PLC  lost 1.6%, BP PLC    fell 1.4% and Royal Dutch Shell PLC    gave up 0.8%.

Marketwatch