- UK stocks slip on renewed U.S. rate-hike worries
- Melrose jumps on upbeat profit outlook
- Miners dip after weak China data
- Synthomer falls on weak demand recovery
- FTSE 100 slips 0.1%, FTSE 250 down 0.3%
Sept 7 (Reuters) - UK stocks extended declines on Thursday after stronger-than-expected U.S. economic data rekindled concerns that interest rates would stay higher for longer, while aerospace supplier Melrose Industries rose on an upbeat profit outlook.
The blue-chip FTSE 100 index dipped 0.1% by 0815 GMT, extending losses for a fourth straight session.
Wall Street's main indexes tumbled on Wednesday after data showed the U.S. services sector unexpectedly gained steam in August, indicating sticky price pressures.
"ISM (services sector data) number perhaps just plays into people's figures that inflation will struggle with that last leg to 2%, which will mean that rates don't go higher, but they do stay higher for longer," said Craig Erlam, senior market analyst, OANDA.
Central banks of Europe, the UK and the United States will hold their monetary policy meetings later this month as market participants are hoping for an end to the global tightening cycle.
Further weighing on the exporter-heavy FTSE 100, data showed China's exports and imports fell in August as the twin pressures of sagging overseas demand and weak consumer spending squeezed businesses in the world's second-largest economy.
Commodity-related stocks fell, with metal miners shedding 1.8% to lead the sectoral decline.
Cardboard maker DS Smith and insurers Admiral and Prudential fell between 0.7% and 2.2% as they traded ex-dividend.
Shares of Melrose Industries jumped nearly 8%, after the company raised its annual profit expectations on the back of higher-than-anticipated margins at its engines division.
The mid-cap FTSE 250 index fell 0.3%, dented by a 31.4% plunge in shares of Synthomer after the polymer maker forecast no recovery in customer demand before the end of this year.
Shares of Energean dropped 1.5% after the oil producer trimmed its annual output forecast.
Motor and home insurer Direct Line Insurance Group said it expects better operating profit in 2024 as premium prices increase, sending shares up 14%.
Reporting by Siddarth S in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips
Source: Reuters