FTSE 100 slips ahead of BoE rate decision, mixed earnings weigh on sentiment

Aug 7 (Reuters) - British benchmark index FTSE 100 slipped on Thursday, as investors weighed a mixed bag of corporate results and awaited the Bank of England's rate decision due later in the day.

The blue-chip FTSE 100 .FTSE was down 0.2% as of 0927 GMT.

The BoE looks poised to cut interest rates for the fifth time in 12 months on Thursday, but lingering inflation concerns could divide policymakers and impact future rate decisions. Investors will closely watch if the central bank maintains its "gradual and careful" tone on policy easing.

In the market, aerospace and defence stocks .FTNMX502010 led the sectoral decline, down 2.6%, after German defence company Rheinmetall RHMG.DE missed quarterly results expectations, dragging down European peers.

Britain's BAE Systems BAES.L and Babcock BAB.L were among the top losers in the FTSE 100, down 4.4% and 4.5% respectively.

Hikma Pharmaceuticals HIK.L fell the most in the benchmark index, down 6.7%, after a strong euro prompted the group to lower its margin outlook for its injectables unit.

Healthcare stocks .FTNMX201030 fell 1.1%, with AstraZeneca down AZN.L 1.5%.

Adding to the sector's woes, U.S. President Donald Trump said on Tuesday that Washington would initially place a "small tariff" on pharmaceutical imports, eventually increasing it to 250%.

Additionally, sterling rose against a weakening dollar, which further pressured the export-oriented companies.

On trade, Trump's higher tariffs of 10% to 50% on dozens of trading partners kicked in on Thursday, testing his bid to shrink U.S. trade deficits without triggering inflation, supply chain disruptions or retaliation from trading partners.

Meanwhile, the domestically focused midcap FTSE 250 .FTMC rose 0.3%, with Harbour Energy's HBR.L 12.6% jump after the oil and gas producer raised its annual forecast.

Among other individual stocks, InterContinental Hotels Group (IHG) IHG.L rose 6.7% following the Holiday Inn owner reported a jump in first-half profit.

WPP WPP.L fell 2.7%, touching its lowest since July 2009, after the British ad group halved its interim dividend.

      
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