London stocks had clawed back some earlier losses, but still closed in the red on Wednesday, amid concerns about rising inflation after the latest set of figures from China and ahead of US data later in the week.
The FTSE 100 ended the session down 0.2% at 7,081.01, and the FTSE 250 lost 0.6% to 22,758.97.
Sterling was also negative, last falling 0.28% on the dollar to trade at $1.4117, and weakening 0.33% against the euro to 1.1592.
“It has been another day where stock markets aren’t particularly keen to go up, and those that are in the red are only seeing some modest profit-taking,” said IG chief market analyst Chris Beauchamp.
“Brexit worries are back as the UK and EU square up over northern Ireland, but while the debate has yet to reach the front pages of most UK newspapers the pound is coming under some pressure against the euro.
“While the discussions will lack the excitement of ‘deal or no deal’ from 2019, it is still something that could spark some volatility in an otherwise-quiet period.”
Data released earlier by the National Bureau of Statistics showed that China’s producer price inflation jumped to 9% in May from 6.8% in April, marking the highest rate since 2008 and coming in above consensus expectations of 8.5%.
Consumer prices, meanwhile, rose to 1.3% in May from 0.9% in April, compared to expectations of 1.6%.
In equity markets, housebuilders were under pressure, with Persimmon, Barratt Developments, Berkeley, Crest Nicholson and Redrow all lower, falling 3.44%, 2.27%, 2.08%, 4.42% and 3.18%, respectively.
Upper Crust owner SSP was under the cosh by 1.88%, after it reported wider interim losses as Covid-19 travel restrictions saw most of its outlets closed, but said it had seen an improvement in trading in the UK and North America since the end of March.
On the upside, travel stocks rallied after the European Union approved vaccine passports.
British Airways and Iberia owner IAG flew 3.27% higher even after the Competition and Markets Authority said it would be investigating BA, as it may have broken consumer law by not offering refunds to customers who couldn’t legally take flights during the pandemic.
InterContinental Hotels added 0.85%, engine maker Rolls-Royce advanced 1.04%, budget airlines easyJet and Wizz Air ascended 1.99% and 3.26%, and cruise operator Carnival gained 0.76%.
Airlines were also benefiting from news that the US Centers for Disease Control and Prevention had relaxed travel advice for more than 110 countries and territories.
Elsewhere, artificial hip and knee maker Smith & Nephew rose 2.28% after an upgrade to ‘outperform’ at Credit Suisse.
Market Movers
FTSE 100 (UKX) 7,081.01 -0.20%
FTSE 250 (MCX) 22,758.97 -0.60%
techMARK (TASX) 4,396.85 0.03%
FTSE 100 – Risers
International Consolidated Airlines Group SA (CDI) (IAG) 204.50p 3.27%
AstraZeneca (AZN) 8,130.00p 2.46%
Smith & Nephew (SN.) 1,506.00p 2.28%
GlaxoSmithKline (GSK) 1,380.40p 2.12%
Informa (INF) 564.80p 2.06%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,706.00p 1.78%
Royal Dutch Shell ‘A’ (RDSA) 1,402.80p 1.33%
Diageo (DGE) 3,460.00p 1.30%
Royal Dutch Shell ‘B’ (RDSB) 1,333.00p 1.20%
Hikma Pharmaceuticals (HIK) 2,446.00p 1.16%
FTSE 100 – Fallers
Persimmon (PSN) 3,120.00p -3.44%
Renishaw (RSW) 5,410.00p -3.06%
3i Group (III) 1,208.00p -3.05%
Evraz (EVR) 624.80p -2.92%
Intermediate Capital Group (ICP) 2,221.00p -2.72%
Legal & General Group (LGEN) 274.10p -2.63%
Schroders (SDR) 3,563.00p -2.60%
Anglo American (AAL) 3,104.00p -2.53%
Barclays (BARC) 180.70p -2.52%
Phoenix Group Holdings (PHNX) 715.60p -2.37%
FTSE 250 – Risers
Restaurant Group (RTN) 139.20p 5.92%
TUI AG Reg Shs (DI) (TUI) 430.00p 3.27%
Wizz Air Holdings (WIZZ) 4,810.00p 3.26%
Tullow Oil (TLW) 60.00p 2.95%
GCP Student Living (DIGS) 177.20p 2.90%
Hammerson (HMSO) 43.28p 2.41%
easyJet (EZJ) 990.00p 1.99%
Domino’s Pizza Group (DOM) 392.00p 1.98%
Ashmore Group (ASHM) 399.40p 1.84%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,706.00p 1.78%
FTSE 250 – Fallers
Paragon Banking Group (PAG) 540.50p -5.27%
Crest Nicholson Holdings (CRST) 436.60p -4.42%
Bellway (BWY) 3,476.00p -3.44%
Close Brothers Group (CBG) 1,592.00p -3.41%
Telecom Plus (TEP) 1,202.00p -3.40%
Rank Group (RNK) 182.60p -3.39%
Aston Martin Lagonda Global Holdings (AML) 2,092.00p -3.24%
Redrow (RDW) 663.20p -3.18%
Ferrexpo (FXPO) 448.40p -3.15%
Dixons Carphone (DC.) 132.80p -3.14%
