London stocks fell after drop in services inflation, Vodafone's gains offset losses

From Investing.com: 2024-06-19 03:25:59

London stocks fell on Wednesday as investors navigated Britain’s inflation hitting the Bank of England’s target and a drop in services price inflation. The blue-chip and mid-cap indices both declined 0.2%, with Vodafone’s gains offsetting losses. Services price inflation decreased to 5.7% in May, below expectations of 5.5%.

Investors were concerned about underlying price pressures and the possibility of an August rate cut being off the table. Headline inflation returned to 2%, meeting the Bank of England’s target. The central bank is set to meet on Thursday to discuss borrowing costs. Vodafone saw gains of 1% after selling an 18% stake in Indus Towers for 1.7 billion euros.

Spectris, a scientific instruments-maker, experienced the biggest drop on the mid-cap index, falling 11% due to lower-than-expected profit forecasts stemming from weak demand in China.



Read more at Investing.com: London stocks wobble after drop in services inflation By Reuters