(Reuters) – Britain’s main indexes were flat on Wednesday as investors took a breather after a rally on easing global trade tensions, with focus shifting to corporate earnings and the state of the economy.
The blue-chip FTSE 100 was down 0.01% by 1024 GMT, while the domestically focused midcap index was up 0.06%.
Despite the day’s muted performance, Goldman Sachs raised its 12-month forecast for FTSE 100 to 8,800 from 8,500, following a crucial U.S.-China trade agreement that has helped dial down global recession concerns.
Imperial Brands plunged 6.6% to the bottom of the blue-chip index after the cigarette maker said CEO Stefan Bomhard will retire after five years in the role, and named finance chief Lukas Paravicini as his successor.
The homebuilders subindex was down 1.5%, with Vistry Group falling 3%.
The chemicals subindex shed 2% as polymer manufacturer Victrex fell 2% after Morgan Stanley cut its price target on the stock.
Bucking the wider trend, Burberry jumped 11.9% to lead midcap performers following better-than-expected fourth-quarter sales and plans to cut 1,700 jobs – about a fifth of its global workforce.
On the economic front, Bank of England interest rate-setter Catherine Mann said she voted to keep borrowing costs on hold last week because Britain’s labour market had been more resilient than she expected.
Data published on Tuesday showed signs of a cooling UK labour market but economists said the drop appeared modest.
The BoE cut its benchmark Bank Rate by a quarter of a percentage point on May 8, a decision backed by five of the Monetary Policy Committee’s nine members.
Among other stocks, Spirax Group dropped 6% after the manufacturing firm reported a slightly lower four-month profit margin as some customers moved their order shipments to later this year.
(Reporting by Ragini Mathur and Twesha Dikshit in Bengaluru; Editing by Devika Syamnath)
