Jan 13 (Reuters) - The UK's FTSE 100 was largely unchanged on Tuesday as investors digested a slew of corporate updates ahead of U.S. inflation data, while energy stocks advanced on supply concerns
FTSE 100 Closes Steady as Mixed Corporate News and US Inflation Data Surface
Market Overview and Key Influences
Jan 13 (Reuters) - The UK's FTSE 100 ended largely unchanged on Tuesday as investors assessed mixed corporate updates and U.S. inflation data, while energy stocks advanced due to geopolitical tensions in Iran and Venezuela.
Impact of US Inflation Data
The blue-chip FTSE 100 closed down 0.03% at 10,137.35 points, following a record close in the prior session. The domestically-focused mid-cap index was down 0.47%.
Sector Performance Analysis
The U.S. inflation report showed core CPI up 2.6% year-on-year, slightly below forecasts of 2.7%. Trump seized on the data, calling it proof that "very low inflation" gives the Fed room for a "big rate cut," renewing his criticism of Chair Jerome Powell.
Corporate Developments
Markets, however, still expect rates to stay unchanged this month, with the Fed seen holding its benchmark at 3.50%-3.75% at its Jan. 27-28 meeting.
The FTSE 350 Oil & Gas index rose 2.3%, with BP and Shell gaining about 2% each. Oil prices increased on concerns over lower exports from Iran and Venezuela.
The precious metals and mining index rose 0.7% after gold prices scaled a new high amid refreshed hopes of Fed rate cuts this year. [GOL/]
Separately, UK inflation expectations fell to 3.6% in December, but Citi said the drop may not fully ease BoE policymakers' concerns about inflation staying above the 2% target.
Smith & Nephew fell 4% after the medical products maker said it will buy U.S.-based Integrity Orthopaedics in a deal that could be valued at up to $450 million.
The stock weighed on the index of medical equipment makers, falling 3.8% to lead sectoral losses. The wider healthcare index fell 0.7%, with heavyweight drugmaker AstraZeneca down 0.8%.
Utilities index also dragged, falling 1.8%.
Raspberry Pi shares were down 2.3% after the single-board computer maker said its 2026 outlook was clouded by volatility in the supply and price of memory.
Whitbread was up 7%, leading individual gains on the FTSE 100 index, after the hotel operator said it expects a lower-than-anticipated hit from business rate hikes announced in the UK's autumn budget.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Shilpi Majumdar, Alexandra Hudson)
