London stocks nudged up in early trade on Thursday as investors eye an expected rate cut from the Bank of England.

At 0825 GMT, FTSE 100 was 0.1% firmer at 9,781.85.

Michael Brown, senior research strategist at Pepperstone, said: "The Bank of England are set to deliver a 25bp cut, lowering Bank Rate to 3.75%, in light of a continued weakening in labour market conditions, and amid faster than expected disinflationary progress.

"Such a decision, though, shan't be a unanimous one, with the MPC instead likely to vote 6-3 in favour of such a cut, with those three dissenters preferring to hold Bank Rate steady."

The BoE rate announcement is due at midday, while the European Central Bank policy announcement is at 1315 GMT.

The ECB is widely expected to stand pat, maintaining the deposit rate at 2.00%.

Brown said President Lagarde is again likely to reiterate that policymakers are in a 'good place', with the easing cycle almost certainly at an end.

"Focus, though, will fall largely on the latest round of economic forecasts, with an upgrade to the near-term growth trajectory likely, but with the 2028 inflation projection of most interest, chiefly as to whether HICP is seen as undershooting the 2% target for a third straight year," he said.

Policy announcements are also due from Riksbank and Norges Bank, which are expected to hold policy rates steady at 1.75% and 4.00%, respectively.

In equity markets, BP nudged lower as the oil giant's chief executive stepped down after just two years in the role, to be replaced by the head of Woodside Energy, Meg O'Neill.

In an announcement late on Wednesday, BP confirmed that Murray Auchinloss would leave both the role and board on Thursday.

Auchincloss - who formally become chief executive in January 2024, after spending four months as interim head - said: "After more than three decades with BP, now is the right time to hand the reins to a new leader."

O'Neill will be BP's third chief executive in five years.

Derren Nathan, head of equity research at Hargreaves Lansdown, said: "With the sector facing pressure, consolidation is the talk of the town, but BP is most frequently seen as prey rather than the hunter. Rival Shell has distanced itself from takeover speculation, but there are other potential suitors. O'Neill may have a fight on her hands to ensure BP's not sold for a song, and to keep a seat at the table if it were to join forces with a competitor.

"Murray Auchincloss's future has been in the balance ever since activist investor Elliott Investment Management took over a 5% stake in BP. Chairman Helge Lund went earlier in the year and the legacy clear-out is now complete. Investors will now be hoping O'Neill has a firm plan to shore up the balance sheet, improve profitability and define BP's role in the energy transition."

Electricals retailer Currys surged as it held annual guidance and reported a jump in half-year profit, with recent trading in line with expectations. The company more than doubled adjusted pre-tax profit for the six months to 1 November to £22m from £9m a year ago.

Outside the FTSE 350, Naked Wines shot higher as it said FY26 profits were set to be towards the top end of guidance.

The company had previously guided to adjusted earnings before interest, tax, depreciation and amortisation of between £5.5m and £7.5m. Naked Wines attributed the improved outlook for adjusted EBITDA to the current success of peak trading across all markets, and its "disciplined approach to all cost areas".

Market Movers

FTSE 100 (UKX) 9,781.85 0.08%
FTSE 250 (MCX) 22,178.40 0.06%
techMARK (TASX) 5,551.91 -0.23%

FTSE 100 - Risers

Rentokil Initial (RTO) 445.40p 2.94%
London Stock Exchange Group (LSEG) 8,892.00p 1.34%
Metlen Energy & Metals (MTLN) 41.28p 1.29%
Compass Group (CPG) 2,387.00p 0.93%
Shell (SHEL) 2,680.00p 0.85%
Smurfit Westrock (DI) (SWR) 2,839.00p 0.82%
Barratt Redrow (BTRW) 377.60p 0.69%
BAE Systems (BA.) 1,692.50p 0.68%
Marks & Spencer Group (MKS) 329.90p 0.64%
Rolls-Royce Holdings (RR.) 1,109.00p 0.64%

FTSE 100 - Fallers

United Utilities Group (UU.) 1,180.50p -1.87%
Burberry Group (BRBY) 1,267.50p -1.40%
GSK (GSK) 1,809.00p -1.34%
Games Workshop Group (GAW) 19,360.00p -0.92%
Croda International (CRDA) 2,743.00p -0.90%
Hikma Pharmaceuticals (HIK) 1,502.00p -0.79%
Flutter Entertainment (DI) (FLTR) 16,375.00p -0.70%
AstraZeneca (AZN) 13,464.00p -0.66%
Babcock International Group (BAB) 1,208.00p -0.66%
Airtel Africa (AAF) 317.20p -0.63%

FTSE 250 - Risers

Oxford Biomedica (OXB) 609.00p 3.75%
Grafton Group Ut (CDI) (GFTU) 953.80p 1.45%
Ninety One (N91) 211.60p 1.15%
HICL Infrastructure (HICL) 118.20p 1.03%
Me Group International (MEGP) 159.60p 1.01%
BlackRock World Mining Trust (BRWM) 800.00p 1.01%
Moonpig Group (MOON) 203.00p 1.00%
International Workplace Group (IWG) 227.60p 0.89%
Pennon Group (PNN) 529.50p 0.86%
Spire Healthcare Group (SPI) 167.60p 0.84%

FTSE 250 - Fallers

4Imprint Group (FOUR) 3,700.00p -3.90%
Oxford Instruments (OXIG) 2,000.00p -2.68%
C&C Group (CDI) (CCR) 129.20p -2.56%
Tritax Big Box Reit (BBOX) 145.00p -1.76%
Hochschild Mining (HOC) 464.00p -1.53%
Aston Martin Lagonda Global Holdings (AML) 62.45p -1.26%
Premier Foods (PFD) 175.00p -1.02%
Ceres Power Holdings (CWR) 217.80p -1.00%
RHI Magnesita N.V. (DI) (RHIM) 2,655.00p -0.93%
Vistry Group (VTY) 629.00p -0.79%