UPDATE 1-UK stocks mixed as investors assess corporate earnings amid fiscal worries

London stocks were mixed on Thursday as investors assessed an assorted bag of corporate updates and remained cautious ahead of next week's UK inflation data amid ongoing fiscal concerns. The blue-chip FTSE 100 closed up 0.12%, while the mid-cap FTSE 250 declined 0.13%. The chemicals manufacturer reported higher sales and maintained its fiscal year profit guidance.

London stocks were mixed on Thursday as investors assessed an assorted bag of corporate updates and remained cautious ahead of next week's UK inflation data amid ongoing fiscal concerns.

The blue-chip FTSE 100 closed up 0.12%, while the mid-cap FTSE 250 declined 0.13%. Data on Thursday showed that Britain's economy expanded 0.1% in August from July, in line with analyst estimates, offering a small boost to finance minister Rachel Reeves ahead of her November budget. However, the return to growth from a small drop in July is unlikely to change expectations for tax increases.

The UK economy has been struggling with low growth and the highest level of inflation among advanced economies, complicating the task for Bank of England policymakers, who held interest rates at 4% last month. Investor attention is now turning to next week's inflation data, which could influence whether the BoE reduces rates in November or December, or waits until early 2026.

In the market, insurance stocks were the worst performers by sector, with Admiral Group declining 2.4%. Travel and leisure stocks slipped 1.1%, after Whitbread posted a 7% drop in half-year profit, weighed down by weaker food and beverage sales. The owner of Premier Inn hotels was the FTSE 100's biggest faller, sliding 10.3%.

Heavyweight AstraZeneca slipped 0.7% after Deutsche Bank downgraded the drugmaker to "sell" from "hold". Travis Perkins fell 3.1% as the building materials supplier flagged ongoing margin pressure and did not provide full-year profit guidance.

Pensions consulting firm XPS Pensions Group reported better than expected half-year revenue but gave up earlier gains to close 2% lower. Conversely, Croda International rose 8.5% to top FTSE 100 gainers, boosting the broader chemicals index by 1.5%. The chemicals manufacturer reported higher sales and maintained its fiscal year profit guidance.

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