Economic news

UK Stocks Edge Lower on Inflation Fears before BoE Nod

  • FTSE down 0.1%, FTMC down 0.4%
  • UK CPI holds ‌at 13-month low of 2.8% in May
  • BoE expected to keep interest rates at 3.75% on Thursday

June 17 (Re - UK stocks edged lower on Wednesday, ​with consumer staples and energy shares weighing, as ​investors assessed steady inflation ahead of the Bank of ⁠England's rate decision.

The blue-chip FTSE 100 index fell 0.14% ​to 10,479.77 points by 0936 GMT, while the midcap FTSE ​250 slipped 0.4%.

  • British inflation unexpectedly held at 2.8% for May, compared with a 3% rise economists polled by Reuters had expected, prompting ​traders to slightly trim their expectations for a rate ​hike later this year.

  • "For the investor it is a dilemma; good news ‌for ⁠the economy's resilience is bad news as it justifies a rate hike," said Nick Saunders, CEO of online investment platform Webull UK.

  • Consumer staple stocks declined with British American Tobacco falling 1.7%.

  • Utilities ​shares fell the ​most among ⁠sectors, slipping 1.1%.

  • Oil prices were steady, trading below $80 a barrel. Oil giants BP and ​Shell L> were down 0.7% each.

  • Among heavyweight banks, Barclays ​rose ⁠2% after BofA Global Research raised its price target, while peer Standard Chartered gained 1.3%.

  • British house prices rose in the year ⁠to ​April, data showed on Wednesday, sending ​homebuilders up 1.5%.

  • Hays rose 1.5% after the recruiter sold its businesses in six European ​countries.

Reporting by Utkarsh Hathi in Bengaluru; Editing by Tasim Zahid

Source: Reuters


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