London's FTSE 100 index underperformed its European peers on Tuesday as investors cut exposure on the back of inflation data from the UK and US.Inflation in the UK fell to zero while in the US, it moved out of the negative zone back into zero. With inflation in both countries at the same rate, deflation fears are weighing on sentiment for both US and UK markets.The FTSE 100 index closed down 0.26% at 7019, above the 7000 market but paring session losses to underperform rival European bourses.Market participants were left more confused about upcoming policies by the two converging central banks, the Federal Reserve and the Bank of England. Though low inflation with weak energy prices can be viewed as a short term positive for both economies, the long term risk of deflation is worrying to say the least.Data earlier on Tuesday from the Eurozone showing an improvement in manufacturing and services activity did little to help UK markets. China's poor manufacturing data weighed on commodity prices earlier in the session but market participants soon concluded that poor Chinese data equate to more Chinese central bank stimulus.Traders also closely watched events unfolding in France where a Lufthansa Germanwings Airbus A320 en route to Dusseldorf from Barcelona crashed. According to reports from AFP, flight 4U9525 lost contact when flying at an altitude of 6800 feet altitude.In commodity markets, oil prices moved off overnight lows with Nymex crude futures up 0.7% while gold prices added 0.2% The British pound dipped against the US dollar by 0.8% after the inflation data to change hands at $1.4874 and the 10-year UK Gilt pared earlier gains to trade up just 4 basis points at 121.29.Kingfisher falls on derailed French bid while Wolseley gets hit by impairment chargeShares in UK-listed home improvement retailer Kingfisher fell over 1% after its bid for French rival Mr Bricolage ran into trouble.Shares in construction and building material company Wolseley dropped after first-half profits plunged due to a hefty impairment charge, though the group did raise its dividend after strong growth in the US.Real estate investment trust Land Securities sold a 95% stake in London's Times Square building to private equity group Blackstone for £268.4m.Centrica shares fell after Deutsche Bank downgraded its rating on the energy firm citing the risks of the upcoming UK elections.Associated British Foods, the owner of Primark fell after Credit Suisse downgraded its 2015 and 2016 earnings forecasts for the company as it expects a weaker euro to hit profitability.Market MoverstechMARK 3,242.18 -0.09%FTSE 100 7,019.68 -0.26%FTSE 250 17,579.24 +0.16%FTSE 100 - RisersInternational Consolidated Airlines Group SA (CDI) (IAG) 613.50p +3.63%Persimmon (PSN) 1,716.00p +2.45%Coca-Cola HBC AG (CDI) (CCH) 1,221.00p +2.26%St James's Place (STJ) 990.00p +1.59%Barratt Developments (BDEV) 542.00p +1.59%Old Mutual (OML) 234.80p +1.56%Dixons Carphone (DC.) 431.20p +1.51%Reed Elsevier (REL) 1,187.00p +1.45%Sports Direct International (SPD) 655.50p +1.39%GKN (GKN) 372.10p +1.31%FTSE 100 - FallersAssociated British Foods (ABF) 2,925.00p -2.86%Wolseley (WOS) 4,098.00p -2.66%Rio Tinto (RIO) 2,884.00p -1.99%Glencore (GLEN) 301.35p -1.87%Anglo American (AAL) 1,093.50p -1.84%Standard Chartered (STAN) 1,120.00p -1.84%Intertek Group (ITRK) 2,536.00p -1.67%Kingfisher (KGF) 367.20p -1.48%Randgold Resources Ltd. (RRS) 4,868.00p -1.36%Carnival (CCL) 3,110.00p -1.30%FTSE 250 - RisersInternational Personal Finance (IPF) 504.50p +7.68%Just Eat (JE.) 378.00p +5.70%Zoopla Property Group (WI) (ZPLA) 180.00p +4.05%Dairy Crest Group (DCG) 468.80p +3.26%Virgin Money Holdings (UK) (VM.) 406.30p +3.23%Entertainment One Limited (ETO) 330.00p +3.00%Balfour Beatty (BBY) 231.20p +2.80%Thomas Cook Group (TCG) 146.10p +2.74%Unite Group (UTG) 595.50p +2.67%UDG Healthcare Public Limited Company (UDG) 485.00p +2.58%FTSE 250 - FallersSoco International (SIA) 161.00p -7.63%Spire Healthcare Group (SPI) 365.00p -6.41%Kaz Minerals (KAZ) 217.60p -6.17%Barr (A.G.) (BAG) 640.00p -5.47%Vedanta Resources (VED) 542.50p -5.07%Brown (N.) Group (BWNG) 335.20p -4.77%Premier Oil (PMO) 142.00p -4.63%Ocado Group (OCDO) 345.70p -4.61%Lonmin (LMI) 129.60p -3.64%AO World (AO.) 179.00p -3.24%FTSE TechMARK - RisersTorotrak (TRK) 10.38p +6.41%Gresham Computing (GHT) 88.00p +3.83%Filtronic (FTC) 11.88p +3.26%BATM Advanced Communications Ltd. (BVC) 13.38p +2.88%Anite (AIE) 88.75p +2.01%E2V Technologies (E2V) 200.00p +1.65%Spirent Communications (SPT) 89.75p +1.41%Ricardo (RCDO) 758.00p +1.07%Kofax Limited (DI) (KFX) 503.00p +0.60%Vectura Group (VEC) 150.75p +0.50%FTSE TechMARK - FallersNCC Group (NCC) 203.00p -7.73%DRS Data & Research Services (DRS) 13.00p -3.70%RM (RM.) 143.00p -1.38%Consort Medical (CSRT) 856.00p -1.10%Skyepharma (SKP) 321.25p -0.85%Dialight (DIA) 775.00p -0.70%XP Power Ltd. (DI) (XPP) 1,510.00p -0.49%SDL (SDL) 436.00p -0.46%Microgen (MCGN) 120.00p -0.41%Optos (OPTS) 344.50p -0.29% XXXX
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