U.K. stocks inched lower on Wednesday, with shares of home builders back under pressure, but a climb in Burberry Group PLC shares helped limit the loss for the benchmark FTSE 100. The FTSE 100 dipped 0.2% to 6,669.06, with oil and gas and consumer goods shares moving lower. But bucking the trend among consumer shares, Burberry was up 2.8% as the British luxury-fashion house said it expects a higher benefit from exchange rates for fiscal 2017. That view comes as Burberry makes 90% of its sales outside the U.K., and the British pound has slid in value after the U.K.'s Brexit vote last month that sets the country on course to leave the European Union. The FTSE 100 on Tuesday slipped 2.17 points, as shares of exporters fell while the pound pushed higher. The pound continued to gain ground Wednesday, on track for a fourth straight rise against the dollar. The pound was buying $1.3267 compared with $1.3254 late Tuesday. The pound's advance comes even as Bank of England policy makers begin meeting Wednesday, with financial markets indicating most investors believe the U.K.'s benchmark interest rate will be cut Thursday to a record low 0.25% from 0.5%. With Home Secretary Theresa May set to become the U.K.'s next prime minister later Wednesday, "the move has settled the nerves of many investors, as it means that one area of huge uncertainty becomes more stable," wrote James Hughes, chief market analyst at GKFX, in a note about sterling. "We must remember the move in the markets has been largely down to the uncertainty surrounding every aspect of the U.K. picture right now, rather than poor economic outlooks or fundamental negativity, much of this is still largely unknown," he wrote. The Bank of England's policy announcement is due Thursday at 12 p.m. London time, or 7 a.m. Eastern Time. Housing: Barratt Developments PLC shares were down 2.4%, to the bottom of the FTSE 100. It's "too early to say what the impact of the uncertainty facing the U.K. economy will be," said Chief Executive David Thomas in a statement. Barratt did post a 20% rise in pretax profit. A "number of factors play into the company's hands, such as Help to Buy, low interest rates, the Bank of England's move to encourage lending and the general undersupply of homes," said Richard Hunter, head of research at Wilson King Investment Management, in an note. "If there is a fly in the investment ointment regarding this update, it is an admission that there has been some increased uncertainty in the higher value London market," he added. Housing stocks have been hit in the wake of the U.K.'s Brexit vote. Shares of rival home builder Taylor Wimpey PLC fell 2.2% Wednesday and Persimmon PLC ost 2.1%. Oil: Shares of BP PLC were down 1% and Royal Dutch Shell PLC dropped 1.1% as oil prices fell more than 1%. Oil futures fell late Tuesday after an industry report showed an unexpected rise in weekly U.S. crude supplies. The closely watched Energy Information Administration report will be released Wednesday. Source: MarketWatch
