British stocks mixed as investors assess US inflation, UK labour market report

(Reuters) -British stocks ended mixed on Tuesday, as investors assessed a tick up in U.S. inflation data, while signs of a cooling UK labour market fuelled speculation over the Bank of England's future rate decisions.

The blue-chip FTSE 100 was nearly flat, while the domestically focused midcap index gained 0.6%.

The U.S. consumer prices rebounded moderately in April, rising 0.2% after a 0.1% dip in March. Inflation is expected to pick up in coming months as tariffs boost import costs.

Following the report, traders leaned into bets that the Federal Reserve would hold off on lowering interest rates until September.

Back home, Britain's jobs market showed further signs of a slowdown as employment fell and growth in wages cooled. That is likely to reassure the BoE that inflation pressures are waning.

Last week, the central bank cut rates by 25 basis points to tackle the expected hit from U.S. President Donald Trump's tariffs, but a surprise three-way split among policymakers cooled expectations that it might speed up future moves.

On the stock indexes, industrial metal miners gained 1.4% tracking gains in copper prices. [MET/L]

Energy sector gained 1.1%, after crude oil futures climbed more than $1 a barrel. [O/R]

Heavyweight Shell led the gains in the FTSE 100 with a 1.2% rise.

Sales and marketing services provider DCC dropped 6.5% to the bottom of the blue-chip index after reporting 2025 adjusted operating profit below estimates.

GSK fell nearly 3% after company, along with partner iTeos Therapeutics, announced plans to discontinue lung cancer therapy development.

On Monday, global stocks rallied after the U.S. and China said they would pause their trade war for 90 days, bringing down reciprocal duties and removing other measures while they negotiate a more permanent arrangement.

(Reporting by Sanchayaita Roy, Ragini Mathur and Twesha Dikshit in Bengaluru; Editing by Shreya Biswas and David Gregorio)