U.K. Stocks Mixed As Inflation Data, Middle East Weigh

(RTTNews) - U.K. stocks showed a mixed performance Wednesday as investors processed inflation data and assessed geopolitical developments in the Middle East.

The benchmark FTSE 100 declined 2.56 points, or 0.02%, to 10,725.48 roughly half an hour past noon, trading within a narrow range between 10,700.28 and 10,747.71.

Bank stocks weakened on expectations that the Bank of England will maintain interest rates despite data showing an acceleration in consumer price inflation during July.

Smith & Nephew fell 4% after the medical technology company announced that CFO John Rogers has resigned from the board effective immediately to pursue a new position in the United States.

IG Group Holdings declined 3.4%, while Entain lost 2.7%. Losses were also recorded by M&G, Persimmon, Halma, Aviva, Hiscox, Barratt Redrow, Marks & Spencer, Pershing Square Holdings, Relx, Experian, National Grid, and Spirax Group, which shed between 1% and 1.8%. Standard Chartered, Lloyds Banking Group, and NatWest Group also moved lower.

Weir Group advanced 1.1%. Gainers included IAG, AstraZeneca, Scottish Mortgage, Admiral Group, B, Croda International, Sainsbury (J), Rio Tinto, Next, Shell, and Airtel Africa, which rose between 0.5% and 1%.

Data released by the Office for National Statistics showed the U.K.'s consumer price index posted annual growth of 2.9% in July, faster than the 2.6% increase in June and the highest in four months, matching economists' expectations.

On a monthly basis, consumer prices rose 0.3%, compared with a 0.1% gain a month earlier. Core inflation, which excludes energy, food, alcohol, and tobacco, remained flat at 2.6% in July.

The goods annual inflation rate climbed to 2.2% from 1.7%, while services inflation eased to 3.4% from 3.6%. Factory gate inflation softened to 3.1% in July from 3.5% in June. Input price inflation declined sharply to 4.9% from 7.4% in the previous month.

Monthly output prices rose 0.2% in July, up from a revised decrease of 0.1% in June. Input prices fell 1.7%, compared with a 1.9% decline in the prior month.