On Wednesday, the FTSE 100 and FTSE 250 indices in the UK declined to a three-week low and an 11-week low, respectively, due to concerns regarding inflation data and the possible need for the Bank of England (BoE) to increase monetary policy.
The FTSE 100 index lost 0.3%, while the FTSE 250 index dropped 0.8%. The absence of a slight fall in consumer inflation, which remained steady at 8.7% in May, added to concerns about a potential 50 basis points hike in the BoE rate, which was initially expected to be 25 basis points.
The BoE's ability to control inflation without affecting the economy adversely also weighed on traders' minds. Homebuilders were the most affected, with a 2.9% drop, while energy stocks rose by 0.4% due to higher crude oil prices.
Meanwhile, Liontrust and the banking sector suffered the most significant losses, with both experiencing a decrease of over 1%.
