UK's FTSE 100 muted as investors assess data-heavy week; Vodafone jumps

Markets tracked dour sentiment globally, as hotter-than-expected consumer and producer inflation readings dampened hopes of an early rate cut from the Fed, potentially setting the tone for other central banks. "Investors are pleased that the market has done well, but they also worry for what comes next, as the inflation prints have sort of put them on edge that maybe the Fed will be a bit more hawkish next week," IG Group chief market analyst Chris Beauchamp said.

The UK's FTSE 100 index was flat on Friday, as investors tracked global downbeat sentiment, with sticky U.S. inflation weighing on hopes of Federal Reserve's interest rate cuts, while Vodafone shares jumped after the telecoms major sold its Italian arm.

The exporter-heavy FTSE 100 was flat at 7,740.22 by 0914 GMT. Markets tracked dour sentiment globally, as hotter-than-expected consumer and producer inflation readings dampened hopes of an early rate cut from the Fed, potentially setting the tone for other central banks.

"Investors are pleased that the market has done well, but they also worry for what comes next, as the inflation prints have sort of put them on edge that maybe the Fed will be a bit more hawkish next week," IG Group chief market analyst Chris Beauchamp said. Medical equipment and services, personal goods, and personal care stocks led declines, down between 0.7% and 1.3%.

Investors will now watch the Bank of England's rate decision next week, where it is widely expected to stand pat but unlikely to provide clear indications about when will it first cut the rate. Money markets expect the BoE to keep rates unchanged in next week's meeting and the first cut only from August.

The FTSE 100, however, is set to end the week in the green, snapping three straight weeks of losses as economic data during the week showed slowing wage growth in the UK, even as the economy returned to growth. Vodafone rose 4% after Swisscom said it would buy Vodafone Italia for 8 billion euros ($8.70 billion) to merge the business with its Italian subsidiary Fastweb.

The domestically-oriented FTSE 250 rose 0.2%, with Bodycote up 4.3% and among top performers after the thermal processing services provider announced a 60 million pound ($76.46 million) share buyback program and improved annual results. 

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