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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.