Investing.com -- British stocks closed lower on Thursday afternoon as the Bank of England lowered interest rates by 25 basis points, in line with expectations, while the U.S. and U.K. announced a trade deal.

The blue-chip index FTSE 100 fell 0.3% and the British pound declined 0.1% against the dollar to 1.3273. 

Meanwhile, DAX index in Germany rose by 1%, the CAC 40 in France gained by 0.9%. 

BoE cuts base rate 

The Bank of England lowered interest rates by 25 basis points on Thursday, in line with expectations, aiming to support the U.K.’s weak economic growth amid ongoing uncertainty.

The central bank reduced its main Bank Rate from 4.50% to 4.25%, with seven out of nine Monetary Policy Committee members backing the move, while two preferred to keep rates unchanged.

Trade deal

President Donald Trump confirmed a trade deal with the United Kingdom (TADAWUL:4280) on Thursday, marking the first since reciprocal tariffs were announced on April 2^nd. 

Importantly, the 10% base tariff will remain for the UK.

Trump and UK Prime Minister Sir Keir Starmer confirmed the deal during a phone call broadcast live.

When answering a question on the deal, the U.S. President said there is "a good commercial for Rolls-Royce (OTC:RYCEY)," which saw its shares close over 3% higher on Thursday. 

Next beats Q1 sales forecast, lifts profit outlook

Next PLC (LON:NXT) has reported first quarter sales that exceeded expectations, attributing the strong performance to a rise in demand for summer clothing due to warmer weather.

The company has also raised its profit outlook for the year.

The retail chain, known for its clothing line, reported an 11.4% increase in full-price clothing sales in the 13 weeks leading up to April 26, compared to the same period a year ago. This growth rate surpasses the company’s initial target of 6.5% growth.

 IHG expects to hit full-year profit target 

InterContinental Hotels Group PLC (LON:IHG), the owner of Holiday Inn, said that it is on track to meet its full-year consensus profit estimate.

For the first quarter, the firm reported a 3.3% jump in global revenue per available room, up from last year’s growth of 2.6%.

U.K. house prices post surprise gain in April

House prices in the United Kingdom rose unexpectedly in April, according to data from mortgage provider Halifax.

The monthly increase of 0.3% came after a 0.5% decline recorded in March.