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Burberry, commodity stocks drag FTSE 100 lower; inflation woes linger

FTSE 100 gains on commodity boost; investors eye BoE policy decision
FTSE 100 gains on commodity boost; investors eye BoE policy decision   -   Copyright  Thomson Reuters 2021
By Reuters

(Reuters) – London’s FTSE 100 fell on Thursday, dragged down by heavyweight commodity stocks and Burberry Group after an underwhelming earnings update, while fears of a pickup in inflation as the economy recovers hurt demand for equities.

The blue-chip index slipped 1.3%, giving up the previous session’s gains. Luxury brand Burberry tumbled 8.1% to the bottom of the index after it reported a 10% drop in annual sales, impacted by store closures and reduced tourism due to COVID-19.

Oil majors BP and Royal Dutch Shell, and miners were among the biggest drag to the index on lower oil and commodity prices. [O/R][MET/L]

The domestically focussed mid-cap FTSE 250 index declined 0.8%.

Globally, stocks slipped after a shocking rise in U.S. inflation bludgeoned Wall Street and sent bond yields surging on worries the Federal Reserve might have to move early on tightening. [MKTS/GLOB]

BT Group, Britain’s biggest broadband and mobile provider, slid 4.2% after it reported a 7% fall in revenue and a 6% drop in adjusted earnings for the year to end-March, and forecast adjusted revenue to be broadly flat this year.

(Reporting by Devik Jain in Bengaluru; Editing by Subhranshu Sahu)