U.K. Stocks Little Changed as Hammond Forecasts Slower Growthby
U.K. stocks erased gains after Chancellor of the Exchequer Philip Hammond said the country’s economy will grow more slowly next year than previously forecast.
Foxtons Group Plc tumbled 14 percent after the British government decided to ban real estate brokers from charging fees to tenants. National Express Group Plc and FirstGroup Plc advanced after Hammond said the U.K. will invest an additional 1.1 billion pounds ($1.4 billion) in English local transport networks. Randgold Resources Ltd. and Fresnillo Plc reversed an earlier advance to slide 2.2 percent or more, tracking declines in precious-metal prices.
The FTSE 100 Index lost less than 0.1 percent at the close, erasing gains of as much as 0.9 percent. The FTSE 250 Index of mid cap shares fell 0.3 percent, after reaching its highest level in almost a month.
The U.K. government will need to borrow more over the next five years, Hammond said in his first fiscal statement since the country voted to leave the European Union. He forecast economic growth of 1.4 percent next year instead of the 2.2 percent projected in March.