UK's FTSE 100 slips as Sainsbury's, non-life insurers weigh

Britain's FTSE 100 fell on Wednesday, pulled down by non-life insurers and a drop in Sainsbury's shares following an earnings update, while investors awaited comments from Bank of England (BoE) Governor Andrew Bailey expected later in the day. The blue-chip FTSE 100 index slid 0.2%, with shares of Sainsbury's dropping 4.1% to the bottom of the benchmark index.

Britain's FTSE 100 fell on Wednesday, pulled down by non-life insurers and a drop in Sainsbury's shares following an earnings update, while investors awaited comments from Bank of England (BoE) Governor Andrew Bailey expected later in the day.

The blue-chip FTSE 100 index slid 0.2%, with shares of Sainsbury's dropping 4.1% to the bottom of the benchmark index. The retailer's shares were poised for their worst day in 15 months, if losses hold. Investors were disappointed that Sainsbury's, Britain's second-biggest supermarket group, failed to upgrade its full-year outlook despite a 7.4% increase in its underlying sales in the key Christmas quarter.

"It is clear from today's numbers from Sainsbury that consumers prioritised their spend over the Christmas period towards food and drink, eschewing more discretionary spending on bigger ticket items, even as the pressure on the cost-of-living continues to ease," said Michael Hewson, chief market analyst at CMC Markets UK. Shares of Tesco were down 1.1%.

Among sectors, non-life insurers led the losses, falling 1.2% to hit their lowest levels in more than seven weeks. Greggs supported the midcaps with a 7.5% jump, as the British baker reported a better-than-expected rise in like-for-like sales in the fourth quarter, driven by demand for seasonal products.

The FTSE 250 midcap index edged 0.1% higher. Persimmon rose 3.1% even as the British housebuilder acknowledged that housing market conditions would remain challenging this year amid broader economic woes, while the broader homebuilders index climbed 1.3%.

Pennon Group slipped nearly 1% after the British water company acquired the holding company of Sutton and East Surrey (SES) Water for an enterprise value of 380 million pounds (about $482 million). Meanwhile, BoE's Bailey is due to speak at 1515 GMT, addressing questions from the House of Common's Treasury Committee about the central bank's half-yearly Financial Stability Report.