FTSE down despite rate cut.

Investors Chronicle - magazine and web content, February, 2008

Weak economic data and inflation worries undermine sentiment Jonas Crosland

Leading shares in London showed little initial reaction to a widely-expected quarter point reduction in UK base rates to 5.25 per cent, and remained in negative territory. The Bank's move came amid growing evidence of a slow down in the pace of economic growth. But investor reaction was muted because there is still concern about the gathering pace of inflation. By lunchtime, the FTSE100 index was off 58.3 points at 5,817.1, while the FTSE250 index was 31 points lower at 9,874. Trading volume was again below average at GBP955m.

Although losses for banks and miners drove the market lower, a raft of earnings reports grabbed the headlines, FT.com reports.

Yell Group was...

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