UK shares dragged down by disappointing earnings

European Stock Markets

Disappointing earnings updates among mid caps weighed on UK shares on Tuesday as investors awaited U.S. inflation data for clues on the speed on interest rate hikes in the world’s biggest economy.

The FTSE  was flat by 0901 GMT, while the mid cap index .FTMC fell 0.4 percent, dragged by a plunge in Greencore shares after the food manufacturer cut its 2018 profit guidance due to issues at its US business.

Investec placed its forecasts and price target under review, noting that even though commercial developments gave the group confidence that the financial performance will improve through into FY19 this was late then management had originally expected.

Greencore (GNC.L) was down 22 percent, the biggest faller among mid caps and set its biggest one-day loss ever.

Still among mid caps, TC ICAP (TCAPI.L) fell 5.6 percent after annual profits at the world’s largest interdealer broker fell short of analyst expectations.

On the FTSE, however, Antofagasta (ANTO.L) rose 2.7 percent following a well-received trading update.

The Chilean miner Antofagasta reported a sharp rise in full-year earnings thanks to higher copper prices and said it would raise its dividend by 177 percent.

In the heavyweight mining sector, Glencore (GLEN.L) and Randgold (RRS.L) both rose 1.6 percent, helping the FTSE offset weakness among consumer staple stocks.

Direct Line (DLGD.L) was the biggest faller on the FTSE with a downgrade at Deutsche Bank to hold from buy sending its shares d own 1.6 percent.

Elsewhere, tonic water maker Fevertree Drinks (FEVR.L) fell 4 percent after hitting a record high in the previous session as a 64 percent jump in full-year core earnings failed to excite investors.

Later in the session, investors will also keep an eye on finance minister’s half-yearly update on the public finances. Philip Hammond is expected to announce an improvement in the country’s slow economic growth outlook but no policy tweak is expected.