UK shares edge down with focus on company news, rate path
The internationally oriented FTSE 100 fell 0.2% by 1025 GMT, while the domestically focussed midcap index slipped 0.1%. Midcap stocks ended June by logging their best quarter in over four years while the blue-chip index logged monthly losses.
Gains on Tuesday were led by precious metal stocks that rose 2.1% with safe-haven gold edging up on a weaker dollar and U.S. tariff uncertainty.
Endeavour Mining and Fresnillo were among the top gainers on the blue-chip, adding 1.8% and 2.2%, respectively. Hochschild Mining gained 3.2% on the midcap index.
Meanwhile, losses were led by the household goods and home construction index, which was down 1.6%.
Barratt Redrow, Taylor Wimpey and Bellway all slipped over 2%.
Bank of England Governor Andrew Bailey stressed on Britain's softening labour market and pointed to rising uncertainity in global economy hurting economic growth and investment intentions.
Traders are currently pricing in a 76% chance of a rate cut from the BoE in August.
Meanwhile, S&P's manufacturing PMI data showed that the sector improved for the third month in a row, but remained below the growth threshold as businesses increased prices to offset higher labour costs.
In individual stocks, food retailer Sainsbury's shares slid 1.3% despite reporting a higher-than-expected rise in quarterly sales.
Standard Chartered Bank shares fell 2.7% after liquidators for Malaysia's sovereign wealth fund 1MDB sued the bank in Singapore alleging fraud that led to more than $2.7 billion in losses more than 10 years ago.
Packaging automation firm Mpac Group shares slumped 25% after the company warned of lower-than-expected annual results due to U.S. tariffs weighing on orders.
In company news, Britain's competition watchdog cleared Aviva's 3.7-billion-pound ($5.08 billion) takeover of smaller rival Direct Line that will create the UK's largest home and motor insurer.
Shares of Direct Line were marginally up.
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