British equities flat as investors weigh mixed data

British equities flat as investors weigh mixed data

(Reuters) -British stocks ended flat on Friday as investors reacted to mixed economic data this week that left the Bank of England (BoE) uncertain about the UK's economic and monetary policy outlook.

The benchmark FTSE 100 dipped 0.04%, in the red for a fourth straight session, dragged by a bigger-than-expected jump in British inflation, lukewarm quarterly earnings and persistent U.S. tariff threats.

The pound touched two-month highs earlier in the day after data showed retail sales rose in January for the first time since August and consumer spending picked up much more sharply than expected despite a weak outlook for the economy.

The currency came off session highs to trade down 0.2% at 1.2638 per dollar.

Meanwhile, a survey showed British businesses are cutting staff at the fastest pace in more than four years ahead of a tax increase ordered by finance minister Rachel Reeves which has already prompted suppliers to jack up their prices.

The conflicting signals show why the BoE has said it will move only gradually and carefully with its next rate cuts after lowering them for only the third time since August this month.

Traders expect only two more rate cuts from the BoE this year.

Meanwhile, U.S. stocks fell from record highs after a weak consumer sentiment reading raised concerns about a slowing U.S. economy. [.N]

In corporate news, Standard Chartered rose 3.8% to a near decade high after the bank announced a new $1.5 billion share buyback and reported a 18% rise in annual profit.

Among sectors, the FTSE 350 precious metals and mining index fell 2.9% as gold prices consolidated after record run. [GOL/]

The midcap FTSE 250 index also closed flat, hovering near a two-week low.

(Reporting by Ragini Mathur and Sanchayaita Roy in Bengaluru; Editing by Shailesh Kuber and Giles Elgood)