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* UK GDP falls 0.3% in April after rising 0.1% in March
* Ferrexpo falls after lowering output amid Ukraine crisis
* FTSE 100 down 1.5%, FTSE 250 off 2.6%
June 13 (Reuters) - London's FTSE 250 index fell to its
lowest level in three months on Monday after data showed
Britain's economy unexpectedly shrank in April ahead of a Bank
of England policy meeting this week.
The domestically-focussed mid-cap index was off 2.6%
and the blue-chip FTSE 100 index was down 1.5%. Both
indexes recorded a fifth straight session of losses.
Britain's gross domestic product (GDP) contracted by 0.3% in
April from March, while over the three months to April GDP was
up by 0.2%, slowing sharply from growth of 0.8% in the three
months to March, official data showed.
"The accumulating evidence that the UK economy is
contracting should detract the Monetary Policy Committee from
more aggressive moves," Gilles Moëc, AXA Group Chief Economist
told the Reuters Global Markets Forum, adding that he expects a
25 bps hike this week.
The Bank of England (BoE) is expected to raise interest
rates on Thursday by 25 basis points (bps) to 1.25%. If it opts
for a bigger hike, it could stoke recession fears.
Separately, industrial and manufacturing output also logged
a surprise monthly fall against a backdrop of inflation nearing
Among individual stock moves, oil majors BP Plc and
Shell Plc fell more than 2%, while industrial miners
shed 3.2%, as commodity prices slid on concerns
around demand due to a rise in China's COVID-19 cases.
Mexico-focussed precious metals miner Fresnillo
jumped 5.6%, topping the gainers on the FTSE 100 index.
Ferrexpo Plc, meanwhile, dropped 6.6% after the
Ukraine-focused miner cut its iron ore production in the wake of
Russia's invasion of its neighbour.
(Reporting by Devik Jain and Amal S; Additional reporting by
Lisa Pauline Mattackal in Bengaluru; Editing by Amy Caren