This comes as investors prepare for central bank decisions
The FTSE 100 index has taken a tumble ahead of important central bank decisions, which was led by a decrease in pharmaceutical giant AstraZeneca’s stocks and a stronger pound, according to Reuters.
The company’s stocks fell by 3.2% following Handelsbanken’s decision to lower its rating from “buy” to “hold” and its paused $375 million (US$271 million) investment in its Cambridge research site.
Notably, Handelsbanken’s move was because AstraZeneca’s aim of reaching $110 billion (US$80 billion) in total revenue by 2030 was “overly optimistic.” Meanwhile, a spokesperson from AstraZeneca had confirmed with Reuters that the decision to halt its investment to the expansion of the research facility was in line with its constant reassessment of the company’s investment needs.
Last January, AstraZeneca had also decided to abandon its plans for a vaccine manufacturing facility in Speke, Merseyside, which was worth $845 million (US$612 million), due to reduced government support despite months of negotiations. Meanwhile last July, it revealed its plans to invest $69 billion (US$50 billion) in the US by 2030.
With the Bank of England expected to hold its interest rates steady due to the rising inflation and its attempt to slow its $188 billion (US$136 billion) per year bond, the Bank of Canada, the US Federal Reserve, and the Bank of Japan have yet to announce its decisions later this week.
The British pound has also contributed to the FTSE 100 index’s fall as it rose to its highest level against the US dollar, which was up 0.4%.
Investors are also anticipating the agreements between the US and Britain with regards to technology and civil nuclear energy as US President Donald Trump is set to make his second state visit later this week. The UK is also looking into finalizing its steel tariffs through a highly anticipated trade deal.
