UK stocks fall as retail sales tumble; HomeServe outperforms

div classBodysc17zpet90 cdBBJodivpReuters – UK shares fell on Friday, led by losses in financials and commodity stocks, as growing prospects of aggressive monetary policy tightening by central banks coupled with a sharp drop in retail sales, sparked concerns about economic growth.p

pThe bluechip FTSE 100 index and the domestically focused midcap FTSE 250 index declined 0.5 each by 07:15 GMT.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pMiners, banks and life insurers fell over 1 each, and were the biggest drags on the FTSE 100 index. p

pBritish retail sales volumes slid by 1.4 in March from February, against a forecast of a 0.3 monthly fall, while separately a research showed consumer sentiment plunging to near alltime low in April, as surging inflation hurt consumer demand and households confidence in the economy.p

pBroadly, Asian shares wobbled, following overnight Wall Street losses after Federal Reserve chair Jerome Powell said a halfpoint interest rate increase will be “on the table” when the Fed meets on May 34 to combat surging price pressures. p

pBank of England Governor Andrew Bailey said on Thursday the central bank was walking a tight line between tackling inflation and avoiding recession, with the strength of the labour market a key question right now.p

pOn a bright spot, HomeServe Plc jumped 9 after it said it was in talks with Canadas Brookfield Asset Management for a possible offer for the home repair services firm.p

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pp Reporting by Devik Jain in Bengaluru Editing by Rashmi Aichp

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