Sharecast - The FTSE 100 was down 0.5% at 7,450.84, having gained earlier in the week on the back of softer-than-expected UK and US inflation data.
Susannah Streeter, head of money and markets at Hargreaves Lansdown (LON:HRGV), said: "Cautiousness about the trajectory of interest rates in the United States is edging back in after retail sales didn’t slow by as much as expected.
"Consumers are still showing enduring resilience, even as lockdown savings are whittled away, leading to some speculation a rate cut move from the Fed will be further off than earlier hopes. China’s fragile housing market has loomed back into focus, after data showed new home prices in 70 major cities across the vast country fell for the fourth month in a row, dipping 0.3% month on month.
"Hopes for a significant trade breakthrough from talks between Joe Biden and Xi Jinping haven’t materialised, despite some limited progress in healing the relationship. But the meeting has underwhelmed, with Chinese stocks largely falling as investors cast an eye back to domestic economic problems."
In equity markets, Burberry tumbled as it warned that the slowdown in luxury demand was having an impact on current trading and could affect full-year sales. It also reported a huge deceleration in sales growth in the first half.
Lancashire Holdings slid as it traded without entitlement to the dividend.
Discount retailer B&M European Value Retail was weaker as JPMorgan (NYSE:JPM) reiterated its ‘underweight’ rating on the shares.
On the upside, Halma (LON:HLMA) rallied as it reported record first-half profit and revenue and said it was on track to deliver full-year 2024 adjusted pre-tax profit in line with analyst expectations.
Aviva (LON:AV) was also a high riser as it reiterated its full-year targets on after the life and general insurer saw premiums jump during the third quarter.
Melrose Industries (LON:MRON) advanced as it lifted its full-year profit outlook, highlighting stronger aftermarket demand and pricing.
Mr Kipling and Bisto owner Premier Foods gained as it boosted its full-year profit expectations following a "strong" first-half performance.
Outside the FTSE 350, Hotel Chocolat rocketed after the premium chocolatier agreed to be bought by US food giant Mars in a 534m deal.
Market Movers
FTSE 100 (UKX) 7,450.84 -0.48%
FTSE 250 (MCX) 18,527.67 -0.80%
techMARK (TASX) 4,081.99 -0.31%
FTSE 100 - Risers
Halma (HLMA) 2,057.00p 4.66%
SSE (LON:SSE) 1,783.00p 1.83%
National Grid (LON:NG.) 1,005.00p 1.60%
Centrica (LON:CNA) 149.70p 1.42%
Tesco (LON:TSCO) 277.10p 1.32%
3i Group (LON:III) 2,130.00p 1.00%
Severn Trent (LON:SVT) 2,695.00p 0.94%
Rolls-Royce Holdings (LON:RR.) 245.70p 0.86%
Experian (EXPN) 2,904.00p 0.73%
Relx plc (REL) 2,942.00p 0.62%
FTSE 100 - Fallers
Burberry Group (LON:BRBY) 1,583.50p -9.23%
Ocado Group (LON:OCDO) 564.80p -5.27%
Hargreaves Lansdown (HL.) 719.40p -4.59%
B&M European Value Retail S.A. (DI) (BME) 537.40p -2.36%
Smith (DS) (SMDS) 292.50p -2.17%
DCC (CDI) (LON:DCC) 5,126.00p -2.10%
Shell (LON:RDSa) (SHEL) 2,581.50p -2.05%
Mondi (LON:MNDI) 1,406.00p -1.99%
Whitbread (LON:WTB) 3,323.00p -1.95%
Smurfit Kappa Group (CDI) (LON:SKG) 2,804.00p -1.89%
FTSE 250 - Risers
Ninety One (N91) 178.30p 3.30%
W.A.G Payment Solutions (WPS) 93.60p 2.18%
Kainos Group (LON:KNOS) 998.50p 1.63%
FDM Group (Holdings) (LON:FDM) 389.00p 1.57%
Premier Foods (PFD) 133.00p 1.53%
IP Group (LON:IPO) 51.20p 1.39%
TP Icap Group (TCAP) 183.70p 1.21%
easyJet (LON:EZJ) 432.80p 1.12%
Hammerson (HMSO) 27.28p 1.04%
Apax Global Alpha Limited (APAX) 167.60p 0.96%
FTSE 250 - Fallers
Lancashire Holdings Limited (LRE) 628.00p -6.76%
Great Portland Estates (GPE) 423.80p -4.81%
888 Holdings (DI) (LON:888) 79.60p -4.04%
Octopus Renewables Infrastructure Trust (ORIT) 93.00p -3.43%
Tyman (TYMN) 268.00p -3.42%
Wetherspoon (J.D.) (LON:JDW) 716.00p -3.24%
QinetiQ Group (QQ.) 339.40p -3.19%
UK Commercial Property Reit Limited (UKCM) 57.60p -3.19%
Assura (AGR) 45.02p -3.18%
Watches of Switzerland Group (WOSG) 594.00p -3.02%