UK shares end lower as inflation concerns weigh on consumer product makers   

Both the World Bank and the IMF have cut their outlooks for global growth, as inflation and the costs of the Ukraine war mount.

UK shares closed lower, weighed by concerns about a slowdown in global economic growth and a series of negative brokerage actions. 

Guinness and spirits-maker Diageo, Dove soap maker Unilever, and personal goods maker Reckitt Benckiser all fell between 2.1% and 1.5%. However, gains in commodity stocks limited the losses. Oil majors BP and Shell were up after JP Morgan raised its price targets on the stocks. 

Meanwhile, SSP Group was among the biggest decliners on the Ftse-250 index after Deutsche Bank downgraded the Upper Crust owner's stock to "hold" from "buy".  Ex-Greencore CEO Patrick Coveney took over the top job at SSP in recent weeks. 

Both the World Bank and the IMF have cut their outlooks for global growth, as inflation and the costs of the Ukraine war mount.

"The market is not only reacting to the downgrades that we've seen in terms of growth expectations yesterday, but also thinking that this is probably the first of many downgrades that we're going see to growth and earnings as we go through the remainder of the year," said Michael Brown, head of market intelligence at Caxton.

Shares in broadcaster ITV fell after broker Berenberg downgraded the stock to "sell" from "hold".

Asos dipped after broker Jefferies cut its price target on the online fashion retailer, while low-cost carrier Wizz Air dropped by almost 5.5% after Barclays lowered its price target. 

Meanwhile, cosmetics group L'Oreal reported better-than-expected first-quarter sales growth, citing strong US and European demand as consumers brushed off concerns about inflation and snapped up high-end beauty products.

Sales for the first three months of 2022 rose 13.5% on a like-for-like basis to €9bn, with double-digit growth from Europe and North America.

Separately, European wholesale natural gas settled at the lowest level since the start of Russia’s war in Ukraine, amid warmer weather and signs from the Kremlin that payment for the fuel in roubles isn’t expected until next month.

Benchmark Dutch gas futures declined 1.9% to €93.77 per megawatt-hour, the lowest closing price since February 23, the day prior to the Russian invasion. 

EU lawyers have drafted a preliminary finding that the payment mechanism would violate its sanctions. 

Reuters, Irish Examiner, Bloomberg