- GSK gains on Citigroup upgrade
- British wage growth stronger-than-expected at end of 2023
- FTSE 100 down 0.1%, FTSE 250 off 0.3%
Feb 13 (Reuters) - UK shares slipped on Tuesday, as stronger-than-expected labour data led to an uptick in the pound and government bond yields, raising concerns about a potential delay in interest rate cuts by the Bank of England.
The blue-chip FTSE 100 index was down 0.1%, as of 0853 GMT, while the midcap FTSE 250 shed 0.3%.
Official data showed British pay logged its slowest pace of growth in more than a year by the end of 2023, although the slowdown was less pronounced than most analysts had predicted, and Britain's jobless rate unexpectedly declined.
The sterling saw a slight increase, last up nearly 0.1%, after the data, and the yield on Britain's benchmark 10-year gilt also rose, last standing at 4.077%, hurting equities. .
"The data very much underscores the reluctance the BoE has been exhibiting regarding any suggestion of early interest rate cuts being made," said Stuart Cole, chief macro economist at Equiti Capital.
"Even though we need to wait until tomorrow for the latest CPI numbers, we may well see the market already start paring back the degree of loosening expected this year."
UK's inflation data for January is due on Wednesday.
Traders are now pricing in around 70 basis points (bps) of interest rate cuts from the British central bank this year, down from around 78 bps before the data. 0#BOEWATCH
Market participants will now await the release of the U.S. inflation data due later in the day, which could provide clues on the outlook for interest rate cuts from the Federal Reserve.
Among individual stocks, GSK added 0.9% after Citigroup upgraded the stock for the first time in seven years, on positive results from DREAMM-7 study for its multiple myeloma drug, Blenrep.
AstraZeneca rose 1.3% following four consecutive session of losses, providing a boost to the market.
London-listed shares of TUI were among top performers on the midcap FTSE 250 index, up 2.6% after Europe's largest travel operator swung to a profit in its first quarter.
Reporting by Shristi Achar A in Bengaluru; Editing by Rashmi Aich and Dhanya Ann Thoppil
Source: Reuters