London’s FTSE 100 dipped in early trading as investors await the latest forecasts from the Bank of England on the trajectory of the UK economy.

The capital’s premier index fell 0.3 per cent to 7,102 during opening exchanges.

Investors are bracing for a raft of announcements from the Bank’s monetary policy committee at 12pm today.

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The Old Lady is expected to keep rates unchanged at 0.1 per cent, while there are strong expectations that some members will dissent on the pace of its current bond buying programme.

Alongside its usual raft of announcements, the Bank will publish an in-depth examination breaking down the prospects for the UK economy over the next quarter.

Michael Hewson, chief market analyst at CMC Markets UK, said: “While there is little likelihood of a change in policy at the meeting this week, it will still be noteworthy if there is dissent on the pace of the bond buying program, and whether the bank will look at slowing the pace.”

The pound gained 0.14 per cent against the greenback to buy $1.39.

The domescially-focused FTSE 250 slipped 0.24 per cent, while AIM shares fell 0.24 per cent in early trading.

Winners and losers

Aerospace engineer Rolls Royce led the morning’s gains, shooting up 2.05 per cent to £106.68 after the FTSE 100 company posted a strong set of results showing it swung back to profit in the first half of this year.

Advertising giant WPP came second, adding 2.17 per cent to reach £961.40.

Read more:WPP raises forecast, following further revenue growth

British Airways parent company IAG came third, rising 1.11 per cent to £172.48 after the government announced several holiday hotspots will move to move to the green travel list.

Miners led the morning’s losses. Evraz dropped 2.03 per cent to £597.20, while Anglo American fell 1.83 per cent to £3,381.

Banking giant Lloyds notched the open’s biggest losses, sliding 2.65 per cent to £46.05.

Around the world

Asian shares posted poor performances in overnight trading as investor fears that a sharp rise in Covid cases in the country could sweep across the region and trigger a reintroduction of restrictions on economic activity.

China’s CSI 300 fell 0.61 per cent and Hong Kong’s Hang Seng dropped 0.65 per cent.

Japan’s Nikkei fared better, up 0.52 per cent.

European shares flew out of the gates – the Stoxx 600 rose 0.61 per cent.

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