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FTSE 100 records best Feb performance since 2019
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Ocado down on wider-than-feared loss
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British bond yields rise, weigh on stocks
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UK grocery price inflation hits record 17.1%
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FTSE 100 down 0.7%, FTSE 250 up 0.1%
(Updates prices to close; adds comments, details)
By Ankika Biswas and Shashwat Chauhan
Feb 28 (Reuters) - The UK's FTSE 100 index fell on
Tuesday, dented by online grocery retailer Ocado and consumer
care firm Croda International on weak earnings, but the
benchmark index managed to record its best February performance
in four years.
The exporter-heavy FTSE 100 closed 0.7% lower, but
notched its strongest February gain of 1.3% since 2019, buoyed
by higher earnings and a weak pound earlier this month.
British long-dated government bond yields touched four-month
highs, tracking euro zone government bond yields after France
and Spain's inflation data aggravated interest rate hikes
worries.
This, coupled with the European Union trade agreement,
helped the pound extend gains for the second straight
day, also pressuring equities.
Meanwhile, data showed British grocery inflation hit another
record high of 17.1%, further cementing the case for higher
rates.
"Prospect of rates turning higher or at least being kept
elevated for longer is being reflected in the strength of the
pound," said Susannah Streeter, head of money and markets at
Hargreaves Lansdown.
Further, a media report said that Bank of England official
Catherine Mann warned that a slump in energy prices might prompt
consumers to spend more on other things, potentially aiding
inflation.
On the earnings front, Ocado slid 12.2% and hit a
three-month low on a wider-than-expected full-year loss.
Croda International dropped 5.2% to log its
steepest one-day percentage drop in nine months as its beauty,
fragrance and home care division's annual profit missed
expectations.
St James's Place rose 3.6%, its strongest one-day
gain in a month, after the wealth manager posted higher annual
profit, underpinned by strong new business flows.
British outsourcing firm Serco Group gained 4.7% on
higher full-year profit, share buyback plan and increased annual
dividend, while aquaculture biotech firm Benchmark Holdings Plc jumped 5.7% following a quarterly profit surge.
Britain's biggest supplier of building materials Travis
Perkins dropped 4% following lower annual profit.
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru;
Editing by Sherry Jacob-Phillips, Shailesh Kuber, William
Maclean)
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