Mixed Day for UK Stocks Amid Inflation and Market Speculation

British stocks closed with mixed results on Tuesday as investors evaluated rising U.S. inflation data and signs of a cooling UK labor market, sparking debate about the Bank of England's future rate decisions.

The FTSE 100 remained nearly unchanged, while the midcap index focused on domestic companies increased by 0.6%. In April, U.S. consumer prices saw a modest rebound with a 0.2% rise, following a minimal 0.1% dip in March. This increase suggests the potential for higher inflation as tariffs are poised to elevate import costs.

In light of these developments, traders speculated that the Federal Reserve might hold off on cutting interest rates until September. Simultaneously, the UK job market provided further evidence of a slowdown, with declining employment and tempered wage growth, which may reassure the Bank of England that inflation pressures are decreasing.

(With inputs from agencies.)