By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks moved lower on Thursday
after Bank of England Gov. Mark Carney signaled the central bank is
inching closer to raising interest rates.
The FTSE 100 index slumped 1% to end at 6,639.71, closing at the
lowest level since mid-August. The pound (GBPUSD) trimmed its loss
to trade at $1.6313, compared with $1.6340 late Wednesday.
European markets also were pulled down by steep losses in U.S.
markets.
Carney: The Bank of England boss, speaking in Wales, 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 the timing 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: Shares of Hammerson PLC dropped 3.7% 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.
Mining firms declined, as metals prices dropped across the
board. Shares of BHP Billiton PLC (BHP) fell 2.9%, Rio Tinto PLC
(RIO) lost 2.4% and Glencore PLC dropped 2.1%.
Shares of Ryanair Holdings PLC picked up 1.2% in Dublin after
the budget airliner raised its full-year passenger guidance and
said profit would be toward the top end of its previous guidance
range. (Read more about more notable European stock moves here:
http://www.marketwatch.com/story/hm-slides-air-france-rises-europes-big-stock-movers-2014-09-25.)
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