FTSE 100 flat; precious metal miners offset gains in homebuilders

Data showed British house prices reported the strongest annual growth rate for a year in January, adding to tentative signs of momentum in the housing market and lifting the homebuilders index 0.7%. Bottom performer precious metal miners shed 0.8% on lower gold prices, ahead of speeches by Federal Reserve officials through the week.

UK shares were subdued on Wednesday, as gains in homebuilder stocks over increase in house prices were offset by a sell-off in precious mining stocks, while investors awaited Federal Reserve officials' comments for monetary policy cues.

The blue-chip FTSE 100 was flat by 08:25 GMT, while the mid-cap FTSE 250 index slipped 0.1%. Data showed British house prices reported the strongest annual growth rate for a year in January, adding to tentative signs of momentum in the housing market and lifting the homebuilders index 0.7%.

Bottom performer precious metal miners shed 0.8% on lower gold prices, ahead of speeches by Federal Reserve officials through the week. Barratt Developments shares dropped 5.9%, after the homebuilder agreed to buy Redrow for about 2.52 billion pounds ($3.18 billion). Redrow shares climbed 13.6%.

Soap maker PZ Cussons forecast a lower annual profit and slashed its interim dividend, sending its shares 14.4% lower to the bottom of FTSE 250, while the broader personal care, drug and grocery stores sub-index lost 0.6%.