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FTSE 100 down 0.3%, FTSE 250 up 0.7%

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AJ Bell drops after founder sells 7.5 million shares

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Redcentric explores sale of co, shares jump

(Updated at 1608 GMT)

By Pranav Kashyap and Purvi Agarwal

May 24 (Reuters) -

London's FTSE 100 slipped on Friday, falling for the fourth

straight session, as receding expectations of interest rate cuts

across major economies and political uncertainty ahead of the

general elections at home weighed on investor sentiment.

The blue-chip FTSE 100 index dipped 0.3%, in its

longest losing streak since February.

However, the domestically-focused FTSE 250

mid-cap index ended 0.7% higher, snapping three sessions of

declines.

The utilities sector fell for a second

consecutive session and closed down 3.3%, dragged by

infrastructure firm National Grid which lost 3.7%.

The benchmark index logged a weekly decline of 1.2% as a

hotter than expected

inflation report

pushed back bets on the Bank of England's first interest

rate cut to September from June.

Investors also

digested

a surprise call on Wednesday for a July election by Prime

Minister Rishi Sunak.

"A hotter than expected inflation report and the

announcement of the general election increases the uncertainty

for the UK, and it's completely abated the expectation that the

Bank of England could cut interest rates sometime in June," said

Ipek Ozkardeskaya, a senior market analyst at Swissquote Bank.

Robust economic data from the U.S. on Thursday showed an

acceleration in business activity in May, and hawkish U.S.

Federal Reserve minutes released earlier this week led traders

to dial back their bets on rate cuts this year.

British

retail sales slid by far more than expected in April as

rainy weather kept shoppers quiet, adding to a mixed picture of

economic data in recent days.

Investors also indulged in profit-booking following a

near 8% climb in London stocks over the past five weeks, market

analysts said.

Meanwhile, declines were limited by gains in the

non-life insurance sector which rose 1.4%.

Rate-sensitive sectors like REITs and

construction and materials rebounded, rising 0.9%

and 1.1% respectively.

Among stocks, AJ Bell fell 4.6% after the

investment platform's founder sold 7.5 million shares in the

company.

Redcentric shares jumped 12.8% after news the IT

services group was working with financial advisor Lazad on an

attempt to sell the company.