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A guy walks by the London Stock Exchange in London, Britain, on August 24, 2015, sheltering under an umbrella. REUTERS/File Photo/Suzanne Plunkett 14 JULY (Reuters) – The FTSE 100 in London dipped on Wednesday as a stronger pound impacted on export-oriented businesses, while inflation in June surpassed the central bank’s target for the second month in a row. The FTSE 100 index (.FTSE) fell 0.3 percent, with travel stocks (.FTNMX405010) falling roughly 0.7 percent. Unilever (ULVR.L), GlaxoSmithKline (GSK.L), and Diageo (DGE.L) were among the biggest drags on the pound as inflation soared to its highest level in nearly three years. Cineworld (CINE.L) was the largest loser on the domestically focused mid-cap index (.FTMC), which slid 0.4 percent. Food, petrol, used vehicles, clothes, and footwear costs all increased in June, pushing inflation above the Bank of England’s target of 2.5 percent, up from 2.1 percent in May, according to official figures released on Wednesday. The UK’s benchmark 10-year bond yields rose by five basis points as a result, although comments from the central bank indicating the rise is expected to be temporary helped to limit further losses. “We’re still in an inflationary limbo,” said Laith Khalaf, a financial analyst at AJ Bell, “where we can’t tell if rising prices are a statistical blip or a more serious and persistent aspect of the global economic recovery.” The blue-chip FTSE 100 has gained about 10% this year thanks to low interest rates, but its rise has halted since June, and it now trades range-bound near the 7,100 mark as increasing COVID-19 cases and inflation dampened investor sentiment. AstraZeneca (AZN.L) was the biggest drag on the FTSE 100, losing 0.7 percent. The UK’s competition regulator has approved Alexion’s $39 billion acquisition (ALXN.O). Barratt Developments (BDEV.L) rose 1.3 percent after forecasting a profit for 2021 that was modestly higher than market estimates. Snack food company SSP Group (SSPG.L) fell 2.7 percent after its CEO announced plans to leave down at the end of 2021 to join a private equity-backed company. Shashank Nayar contributed reporting from Bengaluru, and Subhranshu Sahu and Uttaresh edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More

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