(Reuters) -The UK’s benchmark FTSE 100 edged down on Wednesday, hurt by a sell-off in precious metal miners, while homebuilders slipped on Barratt Development’s deal to buy smaller rival Redrow.
The blue-chip FTSE 100 moved 0.2% lower by 0922 GMT, while the mid-cap FTSE 250 index slipped 0.1%.
Precious metal miners shed 1.4% on lower gold prices, as investors grew cautious ahead of speeches by Federal Reserve officials.
Homebuilders dropped 0.7% following an 8.5% decline in Barratt Developments shares.
Barratt dropped to the bottom of the FTSE 100 after it agreed to buy Redrow for about 2.52 billion pounds ($3.18 billion). Redrow shares climbed 12.2%, leading gains in mid-cap stocks.
Meanwhile, data from mortgage lender Halifax showed British house prices reported the strongest annual growth rate for a year in January, adding to tentative signs of momentum in the housing market.
Kim Kinnaird, director of mortgages at Halifax, said a recent drop in mortgage rates, falling inflation and a resilient labour market had helped confidence among buyers and sellers in early 2024.
Personal care, drug and grocery stores index lost 0.8%, weighed by a decline in PZ Cussons after the soap maker forecast lower annual profit and slashed its interim dividend. The stock fell 20.5%, to the bottom of FTSE 250.
In corporate update, shares in Smurfit Kappa rose 4.9% to the top of FTSE 100 after the paper packaging producer’s volumes increased in the fourth quarter.
Meanwhile, in a sign of relief, Bank of England Deputy Governor Sarah Breeden said she was now thinking about how long interest rates would need to stay at their current level, instead of whether they would need to rise further.
(Reporting by Khushi Singh in Bengaluru; Editing by Rashmi Aich and Varun H K)
By Khushi Singh