UPDATE 1-FTSE 100 hovers near one-month low as global sentiment sours
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UK wage growth slows in September-November period
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Investors assess mixed comments from policymakers
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Rightmove down on JP Morgan downgrade
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FTSE 100 down 0.4%, FTSE 250 flat
(Updated at 0918 GMT)
By Sruthi Shankar
Jan 16 (Reuters) - London's blue-chip FTSE 100 index hovered near a one-month low on Tuesday, dented by risk-off moves in global markets as hawkish remarks from central bankers outweighed support from better-than-expected UK wages data.
The FTSE 100 dropped 0.4% to its weakest level since mid-December, while the domestically focussed FTSE 250 index was flat.
Asian and broader European equities were under selling pressure after European Central Bank officials warned on Monday it was too early to discuss interest rate cuts. There were more mixed remarks on Tuesday.
That countered optimism from data that showed British wages grew at the slowest pace in almost a year, adding to signs of a gradual cooling of the inflationary pressure in the labour market that has worried the Bank of England.
"While the BoE will likely privately welcome today's numbers, we are unlikely to see a shift in its narrative yet, with the higher-for-longer message set to persist still until the BoE is certain that not only is CPI definitively moving back to target, but that the forces that drove it higher are also largely contained too," said Stuart Cole, chief macro economist at Equiti Capital.
UK equities began this year on a downbeat note as global investors scaled back expectations of aggressive monetary policy easing following better-than-expected economic data, particularly out of the United States.
UK's largest property portal Rightmove Plc dropped 4.9%, the biggest loser in the FTSE 100, after JP Morgan downgraded the stock to "underweight".
On the flip side, Ocado Group climbed 5.6% after online supermarket Ocado Retail said it would meet its forecast of a return to positive earnings for its full 2022/23 year.
Experian gained 2.4% after the credit data firm posted a 9% rise in its third-quarter revenue, powered by strong demand for its new products and business wins.
Supporting the mid-cap index, Qinetiq gained 6.3% after the defence group launched a share buyback programme of 100 million pounds ($126.54 million) and reported quarterly earnings in line with its estimates.
($1 = 0.7903 pounds)
(Reporting by Sruthi Shankar in Bengaluru; Editing by Varun H K and Sherry Jacob-Phillips)
