news/AZN/2023.02.06/UK stocks slip as rate hike worries grip investors.txt

(For a Reuters live blog on U.S., UK and European stock
markets, click or type LIVE/ in a news window)*Global sentiment dented by worries over higher interest
rates*BoE's Catherine Mann backs rate hikes*FTSE 100 down 0.8%, FTSE 250 off 0.9%Feb 6 (Reuters) - The UK's FTSE 100 closed lower on
Monday, as upbeat U.S. economic data last week sparked fears of
further monetary tightening and as a top Bank of England (BoE)
official voiced concerns that rates need to stay higher for
longer.The blue-chip FTSE 100 fell 0.8% after briefly
hitting a new record high in the previous session, while the
domestically-focused FTSE 250 recorded a near 1% drop
after climbing to an eight-month peak last week.Nearly all major sectors finished in the red, but precious
metal miners eked out a meagre rise of 0.7%.China-exposed financial services firm Prudential
fell nearly 5% on concerns around elevated Sino-U.S.
geopolitical tensions.Globally, stocks wilted and government bond yields rose
after last week's upbeat economic data from the United States
and other economies lessened the risk of recession, but also
suggested rates might have to be hiked further."Markets are pricing some cuts this year and I think that is
not going to work, that's not going to be what transpires, so
there is room for downside from here for equities," said Vivek
Paul, UK chief investment strategist at BlackRock Investment
Institute.BoE rate-setter Catherine Mann backed further increases in
interest rates and warned that pausing risked a confusing
"policy boogie" if it turned out rates would need to rise again.The Bank of England delivered its 10th straight interest
rate hike last week and signalled the tide was turning in its
battle against high inflation.Data on Monday showed Britain's construction sector had its
worst month in almost three years in January as rising borrowing
costs hit house-building hard.Looking ahead, the week houses some big corporate earnings,
including oil major BP, drugmaker AstraZeneca and
consumer goods maker Unilever.Among individual stocks, Hargreaves Lansdown fell
3.3% after Credit Suisse downgraded the wealth manager's shares
to "underperform" from "neutral".
(Reporting by Sruthi Shankar and Shashwat Chauhan in Bengaluru;
Editing by Subhranshu Sahu, Rashmi Aich and Sharon Singleton)