LONDON, June 20 ― The UK's resources-heavy benchmark index slipped yesterday, dragged by mining stocks which tracked metal prices lower, while shares of pharmaceutical major AstraZeneca slipped on a report of the drugmaker's plans to spin off its China business.

The FTSE 100 slipped 0.7 per cent as miners of both industrial metals and precious metals slipped 1.8 per cent and 1.7 per cent, respectively.

A firmer dollar weighed on copper and gold prices, while a lack of detail on economic stimulus in top consumer China further dented sentiment.

A Reuters survey showed that China is widely expected to cut key lending benchmarks on Tuesday as authorities seek to shore up a slowing economic recovery.

AstraZeneca fell 1.2 per cent, dragging the healthcare sector down 1.1 per cent on the report saying the company plans to spin off its China business and is considering a separate unit listing in Hong Kong.

The FTSE 250 mid-cap index also fell, by 0.9 per cent.

Investor focus will remain on domestic inflation data due Wednesday to assess the state of economy, leading up to the Bank of England's decision on monetary policy on Thursday, with traders almost fully pricing in another 25-basis-point hike.

"For the BoE, the May inflation print will do little to shift the Monetary Policy Committee's thinking around a June rate hike as we believe a quarter-point hike is very likely a done deal,” said Sanjay Raja, chief UK economist at Deutsche Bank Research.

"At most, an upside surprise could trigger more hawkish forward guidance, with the MPC potentially doubling down on its efforts to tackle excess inflation,” Raja said.

British two-year government bond yields rose to 5 per cent for the first time since July 2008.

Bucking the trend, Next advanced 4.7 per cent after the fashion retailer raised its sales and profit guidance for the year.

The broader retailers index rose 0.9 per cent.

Meanwhile, a survey showed a decline in asking prices for British homes in June for the first time in six years, indicating an earlier-than-usual summer slowdown amid mortgage market turmoil.

The UK's homebuilding sector dropped 1.1 per cent.

Trading was thin as U.S. markets were closed for the Juneteenth holiday on Monday. ― Reuters