* Rolls-Royce jumps after raising annual outlook
* Rentokil slumps after flagging weakness in North America
* Bank of England holds interest rates
(Updates with closing prices)
July 30 (Reuters) - London's FTSE 100 closed slightly lower
on Thursday after the Bank of England decided to keep interest
rates on hold and mixed earnings reports weighed on the
blue-chip index.
The FTSE 100 index closed down 0.1% at 10,897.27
points, pulling back from an intraday record high earlier in the
session. The UK midcap FTSE 250 rose 0.3%
* The Bank of England kept interest rates on hold as it
waits to see how the Iran war affects inflation pressures,
although the renewal of hostilities prompted a third policymaker
to back a rate hike.
* The pound initially fell after the BoE's decision
but gained ground as the day wore on against a broadly softer
dollar.
* The FTSE 100 is made up of international companies that
draw a large part of their revenue in dollars, making them
vulnerable to currency fluctuations.
* The U.S. Federal Reserve left interest rates unchanged on
Wednesday even as chief Kevin Warsh pledged an unwavering
commitment to bring inflation down, a message that left markets
confused about what he was prepared to do.
* Precious and industrial metal miners
gained 1.9% and 3%, respectively, tracking gains
in copper prices, and steady prices of bullion.
* Aerospace and defence firms were the top
sectoral gainers following a 6% boost to Rolls-Royce shares
after the engineering company raised its full-year outlook far
beyond market expectations.
* Paper and packaging firm Mondi ( MNODF ) surged 10.9%, its
sharpest one-day jump since August 2022 after first-half results
which powered the FTSE 350 General Industrials
sector to its highest level since March 2025.
* On the flip side, industrial support services
slipped, weighed down by a 20.6% slump in
Rentokil after the pest control firm flagged weakness in
its North America business.
* Energy stocks dipped 0.1% despite Brent
crude topping $90 a barrel after the U.S. military
struck dozens of targets in Iran.