*
IAG closes at over a two-month high
*
U.S. inflation data, BoE rate decision on tap
*
Direct Line skids after profit warning
*
FTSE 100 down 0.2%, FTSE 250 off 0.9%
(Updates to market close)
By Shashwat Chauhan
May 9 (Reuters) - UK's main stock indexes fell on
Tuesday as investors were wary ahead of U.S. inflation data that
could influence the Federal Reserve's interest rate policy,
though British Airways-owner IAG closed at a two-month high
after a bullish brokerage action.
The blue-chip FTSE 100 slipped 0.2% and the FTSE 250 midcap index fell 0.9% after a holiday on Monday on account of the official coronation of King Charles.
International Consolidated Airlines Group SA gained 3.5% after Peel Hunt upgraded the airline operator's stock to "buy" following its upbeat view on travel demand. The wider travel and leisure index rose 1.7%. "Travel stocks have had a really nice run for the last few days," said Christopher Peters, trading floor manager at Accendo Markets. "From mid-April, we've seen a decline in oil prices. That has an effect on costs for the airlines and travel stocks." However, the global mood was downbeat as investors focussed on talks to resolve a U.S. debt ceiling deadlock as well as Wednesday's inflation data which could sway expectations around when the Fed will start cutting interest rates. The Bank of England's policy decision is due on Thursday, with traders betting on a 25 basis points rate hike.
UK's real estate stocks and REITs fell over 3% each as mortgage lender Halifax said British house prices rose in annual terms by just 0.1% in April, their smallest year-on-year increase since December 2012. JD Sports Fashion rose 1.2% after the sportswear retailer said it has proposed to acquire France-based sportswear retailer Courir for an enterprise value of 520 million euros ($572.42 million).
Direct Line Insurance Group lost 4.6% after the
motor insurer said it expected more adverse claims in motor to
pressure its earnings in 2023.
Marshalls tanked 8.7% after the hard landscaping,
building and roofing products supplier said it expected to miss
its full-year expectations.
($1 = 0.9084 euros)
(Reporting by Shashwat Chauhan and Sruthi Shankar in Bengaluru;
Editing by Nivedita Bhattacharjee, Rashmi Aich and Andrea
Ricci)
UK hot stocks: and Wall Street: Gilts report: Euro bond report Pan European stock report: Tokyo stocks: HK stocks: Sterling report: Dollar report:
* For company prices, click on -
* Company directory: By sector:
* For pan-European market data, click on -
* European Equities speed guide................ FTSE Eurotop 300 index........................... DJ STOXX index................................... Top 10 STOXX sectors........................ Top 10 EUROSTOXX sectors................... Top 10 Eurotop 300 sectors.................. Top 25 European pct gainers.................... Top 25 European pct losers..................... ))
