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Cineworld slumps on reports of no bidders for U.S., UK assets
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Rio Tinto falls on profit drop, div cut
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FTSE 100 down 0.6%, FTSE 250 off 0.8%
(Updates to market close)
By Shashwat Chauhan and Shristi Achar A
Feb 22 (Reuters) - Britain's FTSE 100 fell on Wednesday,
bogged down by disappointing earnings from Rio Tinto, while
worries of interest rates remaining higher for longer further
dented risk appetite.
The FTSE 100 lost 0.6%, hitting its lowest level in
over a week.
London-listed shares of Rio Tinto slumped 3.6% after
the global miner posted a 38% drop in annual profit and more
than halved its dividend.
That, along with a dip in metal prices, dragged the
industrial metal mining sector down 2.6% Markets were also tracking volatility in U.S. stocks, with
investor focus on the release of the minutes of the U.S. Federal
Reserve's Jan. 31-Feb. 1 meeting later in the day. Concerns about domestic rate hikes prevailed after data
on Tuesday showed an unexpected rebound in British business
activity in February.
"It looks like inflation and interest rates will be a major
determinant of price action in the months ahead as central banks
continue to try to keep a lid on price levels," said Victoria
Scholar, head of investment at Interactive Investor.
The FTSE 250 midcap index shed 0.8%, falling to its
lowest in more than a month
Despite the session's losses, the exporter-heavy FTSE 100
has had a strong start to the year, helped by some positive
earnings and an uptick in commodity prices, hitting multiple
record highs and breaching the 8000 barrier level.
"If we're going to face that inflation onslaught again, the FTSE 100 will manage better because it's driven by commodities and businesses that are more robust," said Wes McCoy, senior investment director at Abrdn. Shares of Cineworld slumped 10.3% after media reports said the world's second-largest cinema operator had received 40 non-binding bids, but none for its UK and U.S. assets or nearing its $6 billion secured debt load. Lloyds Banking Group ended 0.6% higher after falling as much as 3% earlier in the day. Britain's biggest mortgage lender reported a flat annual profit for 2022 as mounting bad loan provisions offset a jump in income. (Reporting by Shashwat Chauhan and Shristi Achar A in Bengaluru; Editing by Savio D'Souza)
shristi.achara@thomsonreuters.com;))UK hot stocks: and Wall Street: Gilts report: Euro bond report Pan European stock report: Tokyo stocks: HK stocks: Sterling report: Dollar report:
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