By Purvi Agarwal and Shubham Batra
(Reuters) -British equities ended the week on a sour note after stronger-than-expected GDP data spurred worries over interest rate cuts by the Bank of England, while U.S. inflation reading for May boosted market sentiment.
The slid 0.2% to logged its first monthly decline in four. However, the index was up for a fourth consecutive quarter.
The midcap was also down 0.2%, logging weekly and monthly losses.
Britain’s economy grew 0.7% in the first three months of this year, compared with the previous quarter, and came in above an estimate of 0.6% growth, official figures showed.
The figures came in as Britons are set to vote on July 4 in a parliamentary election, which opinion polls suggest will see Labour Party leader Keir Starmer replace Conservative Rishi Sunak as prime minister.
The personal goods sector led the declines, falling 2.4% as Telsey Advisory Group cut target price on Burberry to 1000p from 1300p.
Energy shares led the sectoral gains with 0.7% as expectations of a rate cut by the U.S. Fed buoyed oil prices, while Real Estate Investment Trusts rose 0.5%.
In the U.S., the personal consumption expenditure numbers showed inflation moderating in line with expectations, strengthening hopes for early interest rate cuts this year.
Shares of sportswear brand JD (NASDAQ:) Sports Fashion sank 5.4% and slipped to the bottom of the FTSE 100 after Nike (NYSE:) forecast a surprise revenue fall in 2025 on Thursday.
