News

For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window

FTSE 100 flat, FTSE 250 off 0.1%

Feb 13 (Reuters) - UK shares were muted in early trade on Tuesday, as the pound and government bond yields edged up after a stronger-than-expected labour data from the region, underscoring investor concerns about a delay in interest rate cuts from the Bank of England.

The blue-chip FTSE 100 index .FTSE was unchanged at 7574.58, as of 0808 GMT, while the midcap FTSE 250 .FTMC shed 0.1%.

Data showed British wages excluding bonuses grew 6.2% in the last three months of 2023 from a year earlier, signalling a still-tight labour market.

The sterling GBP=D3 edged up after the data, last up nearly 0.2%, while the yield on Britain's benchmark 10-year gilt GB10YT=RR also gained, last standing at 4.090%, hurting equities. GB/

Traders are now pricing in around 69 basis points (bps) of interest rate cuts from the British central bank this year, down from around 78 bps before the data. 0#BOEWATCH

Market participants will now await the release of the U.S. inflation data due later in the day, that could provide clues on the state of the world's largest economy and help shape the outlook for interest rate cuts from the Federal Reserve.

GSKGSK.L was up 0.8%, after Citigroup upgraded the drugmaker's stock to "Buy" from "Neutral" for the first time in seven years.

(Reporting by Shristi Achar A in Bengaluru; Editing by Rashmi Aich)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.