UK Mid-Cap Index Plummets Amid Retail Woes and Bond Market Strains

The UK mid-cap index hit an eight-month low due to disappointing retail updates and bond market pressures. Retail stocks, including Tesco and Marks & Spencer, fell as economic uncertainties and cost headwinds loom. Rising British borrowing costs and potential tax increases further strained investor sentiment.

The UK mid-cap index fell to its lowest point in over eight months on Thursday, significantly impacted by underwhelming retail sector reports and ongoing turbulence in the bond market, influencing overall investor sentiment.

Shares of the country's largest supermarket chain, Tesco, dropped by 1.7% despite upholding its full-year profit outlook. Marks & Spencer saw an 8.9% increase in like-for-like food sales over the Christmas period; however, warnings of upcoming cost challenges led to a 5.2% dip in shares.

The retail index plunged 2.9%, approaching a year-long low, as prominent discount retailer B&M experienced a 13.4% slump upon revising its annual profit forecast downward. Greggs Plc's shares declined by 10.4% after reporting tepid sales growth amidst cautious holiday spending by consumers.

(With inputs from agencies.)