# London stocks slip ahead of key interest rate decisions
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-12-12
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: British shares close lower as investors await interest rate
Meta Description: Get the latest updates on British shares closing lower, as investors tread cautiously ahead of interest rate decisions this week. Home REIT hits record low
URL: https://financedigest.com/london-stocks-slip-ahead-of-key-interest-rate-decisionshtml

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By Johann M Cherian and Shristi Achar A

(Reuters) – British shares closed lower on Monday, with investors treading cautiously ahead of interest rate decisions this week, while shares of Home REIT hit record low after a short-seller questioned its financial status.

The blue-chip FTSE 100 slipped 0.4% to mark its weakest close in nearly three weeks.

Investors were gearing up for monetary [policy decisions](https://www.financedigest.com/asian-shares-rise-dollar-dips-ahead-of-fed-policy-decision.html "Asian shares rise, dollar dips ahead of Fed policy decision") from the U.S. Federal Reserve and the Bank of England on Wednesday and Thursday, respectively, with both the central banks widely expected to raise [interest rates](https://www.financedigest.com/interest-rates-are-cut-to-an-all-time-low-what-will-this-mean-for-small-businesses.html "Interest rates are cut to an all-time low. What will this mean for small businesses?") by 50 basis points.

[“Markets are in a wait-and-see mode](https://www.financedigest.com/the-recombinant-parvovirus-antigens-market-to-be-on-an-auto-development-mode-with-digitization.html "The Recombinant Parvovirus Antigens Market to be on an auto-development mode with digitization") this week, with CPI from the U.S. and the Fed. The [Fed drives everything and the market](https://www.financedigest.com/markets-start-signalling-fed-may-be-going-too-far-amundi.html "Markets start signalling Fed may be going too far – Amundi") will be looking very closely at these two important data points,” said Andrea Cicione, head of strategy at TS Lombard.

Meanwhile, [data showed Britain’s economy](https://www.financedigest.com/stocks-yields-fall-data-suggests-u-s-economy-cooling.html "Stocks, yields fall; data suggests U.S. economy cooling") rebounded in October a little more strongly than expected from September when output was affected by a one-off public holiday to mark the funeral of Queen Elizabeth, but a recession remained on the cards.

[Reports on inflation](https://www.financedigest.com/uk-retailers-report-record-food-inflation-but-see-falls-ahead.html "UK retailers report record food inflation but see falls ahead"), manufacturing activity and unemployment due this week will give investors a better picture of the British economy.

In the UK, good data is actually good because of [fears that the economy](https://www.financedigest.com/uk-economy-set-for-smaller-hit-in-2023-than-previously-feared-imf.html "UK economy set for smaller hit in 2023 than previously feared – IMF") can actually be in a worse situation of a recession than the U.S.,” said Daniela Hathorn, senior [market analyst](https://www.financedigest.com/market-realist-snags-motley-fool-analyst-brings-on-product-development-guru.html "Market Realist Snags Motley Fool Analyst, Brings on Product Development Guru") at Capital.com.

The mid-cap FTSE 250 fell 0.5% to a one-month closing low.

Home REIT tumbled 17.2% to an all-time low after the British housing [provider said its auditor was carrying out “enhanced audit procedures” after short-seller Viceroy Research questioned its financial](https://www.financedigest.com/mazars-to-acquire-financial-modelling-consultancy-and-training-provider-corality-financial-group.html "Mazars to acquire financial modelling consultancy and training provider, Corality Financial Group") status.

London Stock Exchange jumped 3.0% after Microsoft Corp agreed to [buy](https://www.financedigest.com/beat-the-exchange-rate-and-buy-that-dream-holiday-home-by-paying-in-pounds.html "Beat the exchange rate and buy that dream holiday home – by paying in pounds! ") a near 4% stake in the bourse operator as part of a deal to migrate the exchange’s data platform into the cloud.

(Reporting by Johann M Cherian and Shristi Achar A in Bengaluru; Editing by Anil D’Silva and Alison Williams)


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