By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Most U.K. stocks headed south on
Tuesday, with mining firms and GlaxoSmithKline PLC among the
leading decliners, although the benchmark index trimmed losses
after softer-than-expected inflation data.
The FTSE 100 index fell 0.2% to 6,714.74.
The index traded as low as 6,693.26 earlier in the day, but
started paring losses after the Office for National Statistics said
U.K. inflation came in at 2.2% in October, down from 2.7% in
September and lower than the 2.5% forecast by analysts. A lower
rate of inflation eases pressure on the central bank to tighten
monetary policy.
"The easing in the rate of inflation and underlying price
pressures will provide greater scope for monetary policy to be kept
looser for longer and thereby helping ensure a sustainable upturn
in the economy," said Chris Williamson, chief economist at
Markit.
"Lower inflation reduces the risk of the Bank of England having
to hike rates earlier than it may otherwise prefer to, allowing
policy to focus on stimulating growth rather than warding off
rising inflationary pressures," he added.
The pound (GBPUSD) tripped after the data and traded at $1.5867,
down from late Monday's $1.5991.
Among notable movers in London, shares of GlaxoSmithKline PLC
(GSK) gave up 1.4% after the drug maker said its heart-disease drug
Darapladib missed its target in a phase-three trial.
Mining firms were also on the decline, tracking most metals
prices lower. Shares of Anglo American PLC lost 1.4%, Glencore
Xstrata PLC (GLCNF) fell 0.8%, BHP Billiton PLC (BHP) dropped 0.6%
and Rio Tinto PLC (RIO) gave up 0.4%.
On a more upbeat note in London, Vodafone Group PLC (VOD) gained
0.7% after the wireless-telecoms giant said it swung to profit in
the first half of the fiscal year. However, revenue for its
existing services business declined in the second quarter.
CRH PLC climbed 3% after the building-materials firm reiterated
its expectations for the second half of the year, as it reported a
2% rise in like-for-like sales in the third quarter.
Outside the main index in London, shares of TalkTalk Telecom
Group PLC rallied 7.9% after the TV and telecoms firm raised its
full-year revenue-growth guidance to at least 3% from 2%.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires