UK's FTSE 100 inches lower as market assesses inflation data, mixed earnings
May 21 (Reuters) - Britain's FTSE 100 index edged lower on Wednesday, weighed by a mixed bag of corporate earnings, and as the country's hotter-than-expected inflation data led investors to temper expectations for the Bank of England's interest rate cuts.
As of 0949 GMT, the blue-chip index (.FTSE), opens new tab was down 0.1%.
Britain suffered a bigger-than-expected inflation surge in April, including in areas watched closely by the Bank of England.
"Today's data should put pay to the possibility of another UK rate cut for a few months, and will likely encourage the Bank of England to maintain its hawkish policy guidance for some time yet," said Matthew Ryan, Head of Market Strategy at Ebury.
The chance of a rate cut in August was cut to 40% by investors, down from 60% before the inflation data.
Sterling hit its highest in three years, opens new tab against the U.S. dollar after the figures were published.
The inflation data triggered a slight wobble on the more domestically-focused midcap index (.FTMC), opens new tab, which was down 0.7%.
Separately, British house prices also rose at their fastest pace since the end of 2022 in the 12 months to March, according to official data published on Wednesday.
Among the blue-chips, sportswear retailer JD Sports' shares (JD.L), opens new tab were the worst hit, dropping 6.5% after it warned that President Donald Trump's tariffs may force the company to hike prices in the key market.
Marks & Spencer (MKS.L), opens new tab slid 2% after the retailer said "a highly sophisticated and targeted cyberattack" would cost it about 300 million pounds ($403 million) in operating profit.
On the other hand, aerospace and defence sub-index (.FTNMX502010), opens new tab gained 1.3%.
Utilities (.FTUB6510), opens new tab were up 1% with SSE (SSE.L), opens new tab rising 1.2% even after the renewable energy generator cut its five-year investment plans by 3 billion pounds ($4.04 billion), citing a changing macroeconomic environment across the energy sector.
Currys (CURY.L), opens new tab rose 1.9% after the electricals retailer raised its annual profit forecast for the third time this year.
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