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London Markets: Miners fall but banks rise in London after Fed decision

U.K. stocks on Thursday saw a mixed reaction to the surprisingly hawkish tone from the U.S. Federal Reserve.

The FTSE 100
UKX,
-0.47%

fell 0.6%, after the Fed’s summary of economic projections showed two interest rate increases in 2023 and the central bank said that it has begun discussing when to slow down the rate of bond purchases.

With metals prices reacting to the rise in bond yields — gold futures
GC00,
-3.34%

fell $63 an ounce — shares of metals producers including Rio Tinto
RIO,
-1.48%

and Anglo American
AAL,
-1.99%

fell.

But banks including HSBC Holdings
HSBA,
+2.16%
,
Standard Chartered
STAN,
+2.33%

and Barclays
BARC,
+2.38%

advanced on the news. Bank shares tend to rise when bond yields increase, as investors hope for improving margins.

Premier Inn operator Whitbread
WTB,
+3.19%

rose 3%, after reiterating its outlook for the year, following a fiscal first quarter in which like-for-like sales were 71% below two years ago.

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