Investing
UK stocks slip on mixed earnings, focus on U.S. inflation data
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(Reuters) – The main UK stock indexes fell on Wednesday as investors digested mixed earnings reports, while caution reigned in global markets ahead of U.S. inflation data that could keep the Federal Reserve on course for more interest rate hikes.
(Reuters) – The main UK stock indexes fell on Wednesday as investors digested mixed earnings reports, while caution reigned in global markets ahead of U.S. inflation data that could keep the Federal Reserve on course for more interest rate hikes.
The blue-chip FTSE 100 slipped 0.2%, moving further away from a two-month peak hit earlier this week, while the midcap FTSE 250 index was down 0.3%.
Deliveroo slipped 1.3% after the food delivery company said it was consulting on leaving the Netherlands market after failing to gain a strong local position, as its first-half pre-tax loss widened.
Royal Mail fell 3.4% after it warned of a full-year loss in the UK if the Communications Workers Union (CWU) went ahead with its plans of a four-day strike.
Asia-focused insurer Prudential Plc slipped 1.5%, as it warned of challenging conditions for the rest of the year as COVID-19 curbs persist in some markets.
Insurer Aviva, however, rose 4.9% after saying it planned to give more money back to shareholders as it posted a better-than-expected 14% rise in first-half operating profit.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Rashmi Aich)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured annually and can impact interest rates and economic policy.
The FTSE 100 is an index that represents the 100 largest companies listed on the London Stock Exchange. It is a key indicator of the performance of the UK stock market.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage. They are influenced by central bank policies and can affect economic activity.
A stock index is a measurement of a section of the stock market, representing a portfolio of stocks. It is used to gauge market performance and investor sentiment.
A pre-tax loss occurs when a company's expenses exceed its revenues before taxes are deducted. This indicates that the company is not profitable during that period.
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