UK's FTSE 100 pauses as hot inflation report outweighs energy boost
Oct 21 (Reuters) - Britain's FTSE 100 was little changed on Wednesday as hotter-than-expected inflation reinforced bets on the Bank of England (BoE) increasing interest rates, overshadowing gains in oil majors that tracked firmer crude prices.
The blue-chip FTSE 100 index .FTSE fell 0.1% to 10,723.02 points by 1022 GMT, after two sessions of declines in a row. The midcap FTSE 250 .FTMC was muted at 0.02%.
UK inflation rose to 3.5% in September, above economists' expectations of 3.4%, as the US-Israel war on Iran pushed up energy prices
Money markets are pricing in a 98.8% probability of a 25-basis-point BoE rate hike in November, according to LSEG data
"We're likely to see both haulage and agriculture hit hard — sectors that get food and goods to our doors, and a sustained rise here could cause a really nasty second-round shock," Nick Saunders, CEO of online investment platform Webull UK, said
Finance minister John Healey came under pressure ahead of next week's budget after official data showed government borrowing beat forecasts for a second straight month, pushing public debt above £3 trillion ($4.01 trillion)
Energy stocks .FTNMX601010 gained 1.1%, as oil prices rose 1.2% as escalating Middle East tensions fuelled fears of supply disruptions O/R
Oil-linked stocks gained, with BP BP.L and Shell SHEL.L among the biggest boosts to the FTSE 100 as crude prices climbed
Asset manager Aberdeen Group ABDN.L, among top losers on the FTSE 100, fell 3.5% after flagging a slower-than-expected return to adviser-segment inflows
Midcaps: bicycles-to-car parts retailer Halfords HFD.L dropped about 9%, the steepest on the FTSE 250, after first-half results