By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.K. equities switched between minor
gains and losses Thursday, with a pullback in shares of Vodafone
Group PLC and cautiousness among investors ahead of the European
Central Bank's policy decision pinching the market's benchmark
index.
The FTSE 100 index crept up less than 1 point to 6,659.59. The
equity gauge on Wednesday added 0.1%.
U.K. stocks were little changed along with other major European
bourses before the release of the ECB's policy decision, due at
12:45 p.m. U.K. time. An accompanying press conference is scheduled
for 1:30 p.m. U.K. time While the central bank isn't expected to
make any changes in policy, there has been speculation that
officials will at some point take action to fight low inflation.
Such move would come in the face of improving economic data and
expanding growth. Read about what the ECB decision could mean for
investors.
Ahead of the ECB decision, a report showed activity in the U.K.
services sector grew, albeit at the slowest pace in nine months,
according to Markit/CIPS data released Thursday. The business
activity index came in at 57.6 in March compared with 58.2 in
February.
Meanwhile, Mark Carney, head of the Bank of England, raised the
prospect for policy change at the central bank, with Carney telling
The Northern Echo daily that U.K. interest rates may increase
before the country's next general election.
Among movers in the U.K. market, Vodafone (VOD) shares were off
0.6% after the company said its U.K. division will invest GBP1
billion ($1.66 billion) toward improving its network, and that it
aims to create 1,400 jobs with the opening of 150 new stores.
But Tullow Oil PLC topped price performers, climbing 5% after
the oil exploration company said it plans to repay some debt with
proceeds from the sale of $500 million of senior notes.
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