London Stocks Dip Despite Water Firm Gains

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London's top equity markets experienced a decline in value following recent central bank interest rate decisions, despite a positive performance by water firms. Global sentiment remained weak after a sell-off on Wall Street, fueled by Federal Reserve Chairman Jerome Powell's comments that moderated expectations for further interest rate cuts next year. London stocks initially traded lower and remained subdued despite the Bank of England maintaining interest rates at 4.75%. German stocks also fell for the fifth consecutive day, while US stocks attempted to recover from a 10-day losing streak. In currency markets, the pound initially rose but later dropped despite the Bank of England's decision, with traders focusing on predictions of weak GDP growth. Conversely, water firms Severn Trent and Pennon saw gains after Ofwat, the industry regulator, announced that companies could raise customer bills by more than initially expected. Outsourcing firm Serco also increased in value, citing strong momentum in the latter half of 2024 and a positive outlook for 2025.