London stocks dip at start of earnings-heavy, BoE rate verdict week

Nov 3 (Reuters) - London's main stock indexes dipped on Monday, dragged down by materials and utilities shares, as investors prepare for a week packed with major corporate earnings and the Bank of England's closely watched interest rate decision.

The blue-chip FTSE 100 .FTSE edged 0.2% down following its nearly 4% jump in October.

The FTSE 250 .FTMC midcap index also fell 0.3%, dropping for a sixth straight session.

This week brings a busy earnings calendar with drugmaker AstraZeneca AZN.L, oil giant BP BP.L, spirits maker Diageo DGE.L and British Airways owner IAG ICAG.L all reporting.

Meanwhile, the BoE is expected to pause its rate-cutting cycle on Thursday, though recent softer inflation and wage data could strengthen the case for a cut.

"The committee is deeply divided, and we don't expect clear signals on the Bank's next steps," ING analysts said in a note.

Industrial metal miners .FTNMX551020 emerged as Monday's primary laggards, down 2.2%, with Rio Tinto RIO.L and Glencore GLEN.L both sliding more than 2%.

The utilities sector .FTUB6510 also faced pressure, with midcap companies Pennon Group PNN.L, Renewable Infrastructure Group TRIG.L and Greencoat UK Wind UKWG.L declining between 2.8% and 4.7%.

Frasers FRAS.L shed 5.4% after the RBC downgraded its rating on the sportswear and fashion retailer to "sector perform" from "outperform".

Vodafone Group VOD.L dropped 5.2% after UBS downgraded its rating on the telecom company to "sell" from "neutral".

On the economic front, British factories reported their strongest month in a year in October, though the improvement was largely attributable to Jaguar Land Rover resuming production after a cyberattack, the S&P Global PMI data showed.

Back to stocks, financials, including life insurers .FTNMX303010 and banks .FTNMX301010, were the biggest boosts.

Ceres Power Holdings CWR.L jumped 11.1% after Goldman Sachs added the clean energy technology developer to its European Conviction List - a list of top "Buy" rated stocks in Europe.

Telecoms firm Airtel Africa AAF.L extended gains to a fifth straight session after reporting earnings last week, climbing 5.9% on Monday.

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