*
FTSE 100 down 0.4%, FTSE 250 down 0.5%
*
British medical equipment shares slide on US tariffs fears
*
Petershill Partners ( PHLLF ) fall amid delisting plan
*
Mitchells & Butler dives on weak Q4 sales growth
(Updates after markets close)
Sept 25 (Reuters) - London stocks closed lower on
Thursday as investors turned cautious over inflation risks and
the Bank of England's interest rate outlook, while weakness in
medical device makers and healthcare shares added to the drag.
The benchmark FTSE 100 fell 0.4%, its biggest
percentage slide in a week. The domestically focused FTSE 250
was down 0.5%.
BoE policymaker Megan Greene said on Wednesday that the
risks of inflation in Britain will prove stronger than the
central bank's forecast, meriting a cautious approach to further
interest rate cuts.
The country has the highest inflation rate among Group of
Seven economies, at 3.8% in August, and the BoE thinks it will
peak at 4% in September before falling back to the central
bank's 2% target in the spring of 2027.
Meanwhile, Wall Street share indexes fell to their lowest in
a week on Thursday, as fresh economic data and comments from a
Federal Reserve official tempered optimism over further rate
cuts.
Yields on British government bonds climbed after data showed
the U.S. economy grew more quickly than previously expected,
pushing up borrowing costs on both sides of the Atlantic.
British medical equipment and services stocks
fell 2.3% after the U.S. Commerce Department said it had opened
new national security investigations into the import of personal
protective equipment, medical items, robotics, and industrial
machinery.
Medical equipment maker Convatec Group ( CNVVF ) was the
biggest decliner on the FTSE 100, falling 5.6%, while
Smith+Nephew declined 1.2%.
An index of healthcare stocks also
declined 1.8%.
Mitchells & Butlers ( MBPFF ) fell 8.5% after the British pub
and restaurant operator reported a weak sales growth compared to
the previous quarter.
Petershill Partners ( PHLLF ) jumped 34.2% after the
investment group, majority owned by Goldman Sachs, became the
latest UK-listed firm to announce plans to delist from the
London Stock Exchange, citing dissatisfaction with its share
price and valuation.
An index of industrial metal miners continued
gains from the previous session, up 1.5%, tracking gains in
copper prices.
Rio Tinto was the top gainer in the FTSE 100, up
3.5%.