London stocks open lower as inflation data deepens rate hike concerns

UK shares fell on Wednesday as data signalling stubborn price pressures deepened concerns that the Bank of England may need to do more, with investors also awaiting fresh clues on the Federal Reserve's policy tightening plans from Chair Jerome Powell. Pressured by a firm sterling, the export-oriented FTSE 100 was down 0.5% at 0710 GMT.

UK shares fell on Wednesday as data signalling stubborn price pressures deepened concerns that the Bank of England may need to do more, with investors also awaiting fresh clues on the Federal Reserve's policy tightening plans from Chair Jerome Powell.

Pressured by a firm sterling, the export-oriented FTSE 100 was down 0.5% at 0710 GMT. The FTSE 250 mid-cap index shed 0.7%. After data showed consumer inflation was unchanged at 8.7% in May, contrary to expectations of a slight fall, traders ramped up their bets of a 50 basis point (bps) BoE rate hike on Thursday from the 25 bps hike anticipated earlier.

In a testimony later in the day, Powell is poised to be questioned on the future of rate hikes by the world's most influential central bank. Bucking a weak broader market trend, energy stocks gained 0.4%, tracking higher crude oil prices

Halfords gained 5.4% on plans to grow its bikes and car parts' market share to boost profits, while Berkeley Group Holdings dropped 2.3% after the high-end homebuilder warned of demand concern.