GSK gains on Citigroup upgrade
British wage growth strongerthanexpected at end of 2023
FTSE 100 down 0.1, FTSE 250 off 0.3

Feb 13 Reuters UK shares slipped on Tuesday, as strongerthanexpected labour data led to an uptick in the pound and government bond yields, raising concerns about a potential delay in interest rate cuts by the Bank of England.

The bluechip FTSE 100 index was down 0.1, as of 0853 GMT, while the midcap FTSE 250 shed 0.3.

Official data showed British pay logged its slowest pace of growth in more than a year by the end of 2023, although the slowdown was less pronounced than most analysts had predicted, and Britain39;s jobless rate unexpectedly declined.

The sterling saw a slight increase, last up nearly 0.1, after the data, and the yield on Britain39;s benchmark 10year gilt also rose, last standing at 4.077, hurting equities. .

The data very much underscores the reluctance the BoE has been exhibiting regarding any suggestion of early interest rate cuts being made, said Stuart Cole, chief macro economist at Equiti Capital.

Even though we need to wait until tomorrow for the latest CPI numbers, we may well see the market already start paring back the degree of loosening expected this year.

UK39;s inflation data for January is due on Wednesday.

Traders are now pricing in around 70 basis points bps of interest rate cuts from the British central bank this year, down from around 78 bps before the data. 0BOEWATCH

Market participants will now await…