U.K. stocks declined on Tuesday after a survey signaled a severe slowing in economic activity in May.
The S&P Global/CIPS initial readings showed the composite PMI falling from 58.2 to 51.8, a fifteen-month low as inflationary pressures and geopolitical uncertainty hit demand.
Meanwhile, the U.K. budget deficit narrowed from last year in April, but the shortfall was the fourth-highest on record, separate data from the Office for National Statistics revealed.
The benchmark FTSE 100 slipped 33 points, or 0.4 percent, to 7,480 after rallying 1.7 percent the previous day.
The risk around windfall tax on the power sector sent shares of power companies tumbling, with SSE, Centrica and Drax Group plunging 9-16 percent.
Renewi shares surged 7.6 percent. The company, which converts waste into secondary products, said full year revenues rose 10 percent while underlying earnings jumped 83 percent.
Greencore Group, a manufacturer of convenience food, jumped nearly 6 percent. The company reported first-half profit before tax of 1 million pounds, compared to last year’s loss of 1.8 million pounds.
Lender Barclays gained nearly 2 percent after launching a 1-billion-pound share buy-back program.
Market Analysis
FTSE 100 Dips As Power Stocks Drag
2022-05-24 09:31:03
