LONDON, May 18 — London’s FTSE 100 ended the day and the week slightly lower yesterday, pausing after a run of record highs and ahead of a reading of UK inflation next week that will set near-term expectations for the timing of a first interest rate cut.
The blue-chip FTSE eased 0.2 per cent on the day and was down 0.1 per cent for the week, just snapping three weeks of gains. The midcap FTSE 250 index fell 0.4 per cent.
The personal goods sector led yesterday’s decline, falling 2.3 per cent, followed by automobile parts, which slipped 1.7 per cent.
A 2.4 per cent gain in precious metal miners, tracking higher gold prices and a surge in silver, partly offset the losses.
For the week, the industrial support services sector outperformed, finishing 3.3 per cent higher, while the energy sector sector lagged with a 4.1 per cent drop.
“It’s more just pausing for breath after quite a spectacular rally across last week and this week,” said Fiona Cincotta, senior market analyst at City Index.
“We’re seeing consolidation as investors wait for the UK inflation data next week.”
UK consumer price inflation data is expected on Wednesday and will be parsed for clues on the timing of a first Bank of England interest rate cut.
Traders are currently pricing in a 52.6 per cent chance of a 25 basis point cut in June.
Consumer healthcare firm Haleon fell 1.0 per cent after drugmaker GSK sold its entire remaining stake in the company, raising £1.25 billion (US$1.52 billion).
Auto Trader Group was down 3.3 per cent after Morgan Stanley cut its rating and target price on the stock.
Land Securities Group fell 2.6 per cent despite the commercial property firm posting a smaller annual loss, with elevated interest rates continuing to weigh on the valuation of its buildings. — Reuters
