UK shares inched lower on Thursday as investors worried about the prospect of a more aggressive monetary policy by central banks to curb inflation, while Playtech slumped after TTB Partners dropped plans to bid for the gambling software maker.
The blue-chip FTSE 100 slid 0.2% by 0713 GMT, while the domestically oriented FTSE 120 index declined 0.1%.
Wall Street ended lower on Wednesday after hotter-than-expected US inflation data fuelled fears that the Federal Reserve could raise key interest rates by as much as 100 basis points later this month.
FTSE 100 falls as UK’s surprise growth fails to ease recession fears
Among single stocks, Britain’s largest homebuilder Barratt Developments Plc fell 3.8% to the bottom of FTSE 100 even as it forecast annual profit slightly ahead of market expectations.
The wider housing sector slipped 1.3%.
A survey showed British house prices rose at their slowest pace in more than a year in June as buyer demand softened although the overall breadth of price increases remained well above pre-pandemic levels.
Playtech tumbled 12.4% after Hong Kong-based investment and advisory firm TTB Partners walked away from making a takeover offer for the company, citing challenging market conditions.