By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks moved lower in afternoon
action on Thursday after Bank of England Governor Mark Carney
signaled the central bank is inching closer to raising interest
rates.
The FTSE 100 index fell 0.4% to 6,682.34, partly erasing a 0.5%
gain from Wednesday. The pound (GBPUSD) trimmed its early loss to
trade at $1.6335, compared with $1.6340 late Wednesday.
Most other European markets were on the rise, after European
Central Bank President Mario Draghi reiterated that the Governing
Council stands ready to "use additional unconventional instruments"
to combat low inflation. Economists expect the "unconventional"
stimulus measures could be a full-scale quantitative-easing
program.
Carney: The U.K.'s central bank was in the spotlight, with BOE
boss Carney speaking at the Institute and Faculty of Actuaries
General Insurance Conference in Wales. Carney said the central bank
is getting closer to the first rate hike, but qualified that
increases in borrowing costs likely will be gradual and limited. A
hike could come as early as next year, economists predict.
Repeating recent comments, Carney also said that the exact
timing of a rate hike will depend on the strength of the U.K.
economy.
"While there is always uncertainty about the future, you can
expect interest rates to begin to increase. We have no preset
course, however, the timing will depend on the data," he said.
Movers: Royal Bank of Scotland Group PLC (RBS) added 0.3% after
the bank said its Chairman Philip Hampton will step down during
2015 to become GlaxoSmithKline PLC's (GSK) chairman. GSK shares
were up 0.4%.
Shares of Ryanair Holdings PLC picked up 1.8% in Dublin after
the budget airliner raised its full-year passenger guidance and
said profit would come in toward the top end of its previous
guidance range.
On a more downbeat note, shares of Hammerson PLC dropped 3.4%
after the retail landlord said it will raise around 400 million
pounds ($652.8 million) by issuing new shares to buy 40% of
Highcross Shopping Centre in Leicester.
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