FTSE 100 Struggles For Direction

U.K. stocks were little changed on Wednesday as worries about rising inflation offset data showing the U.K. private sector's expansion continued in June.

The U.K. private sector logged one of the fastest expansion on record in June as there were marked increases in output across the manufacturing and services sectors as the economy continued to reopen, a closely watched survey showed.

The flash composite output index dropped to 61.7 in June from 62.9 in May, data compiled by IHS Markit and the Chartered Institute of Procurement & Supply revealed.

The services Purchasing Managers' Index fell unexpectedly to 61.7 in June from 62.9 a month ago.

The rate of input cost inflation accelerated for the fifth month running and was the joint-fastest on record. In turn, the rate of output price inflation hit a fresh record high for the second month running.

The benchmark FTSE 100 was down 5 points at 7,084 in lackluster trade after rising 0.4 percent on Tuesday.

Phoenix Group Holdings shares declined 2.7 percent. Swiss Re announced that it has sold 66.2 million shares or 6.6 percent stake in the long-term savings and retirement giant for 437 million pounds through an accelerated book building process.

Paper manufacturer Mondi dropped half a percent after saying it approved a €125 million capital investment project at its semi-chemical fluting mill in Kuopio, Finland.

Housebuilder Persimmon lost about 1 percent. The company has agreed a number of voluntary informal undertakings relating to its historic sale of leasehold houses with the U.K. competition watchdog.

Property developer and house builder Berkeley Group Holdings fell 1.3 percent as it posted nearly 3 percent growth in its pre-tax profit for the full year, reflecting sale of new homes in London and the South East.

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