British equities end mixed over corporate updates

IG Group, St. James's Place slide after earnings updates

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Elementis climbs on report of potential bid

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UK retail sales slip in January at fastest pace in three years

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FTSE 100 flat, FTSE 250 up 0.3%

Jan 25 (Reuters) - Britain's benchmark index was muted on Thursday and mid-cap stocks climbed following corporate updates, while hotter-than-expected U.S. GDP data tempered hopes of early interest rate cuts by global central banks.

The blue-chip FTSE 100 was flat, while the domestically focussed FTSE 250 added 0.3%, reversing early losses.

Elementis was the top performer on the FTSE 250, jumping 12.1% after a shareholder urged the board to "initiate a sales process immediately" following news that the chemicals firm had spurned the latest takeover approach from KPS Capital Partners.

IG Group led declines on the mid-cap index, losing 7.6%, after the online trading platform reported a drop in first-half earnings due to softer market conditions.

Shares of St. James's Place fell 4.4% to the bottom of the FTSE 100 after net inflows at the wealth manager experienced a sharp slowdown in 2023.

Industry survey showed British retail sales volumes slid in January at the fastest pace in three years, indicating that retailers are still feeling the strain from increases in prices and interest rates over the last two years.

Meanwhile, much-awaited U.S. GDP data showed the economy grew faster than expected in the fourth quarter, suggesting that March would be too soon for the Federal Reserve to start cutting interest rates.

"The problem for the market is that the Fed doesn’t have to be in a hurry to cut. Rather than cutting sooner and faster, the Fed can cut later and slower," said Brian Jacobsen, chief economist, Annex Wealth Management.

The European Central Bank kept rates unchanged at a record high 4%, as expected in its latest monetary policy meeting, giving no hint that policymakers are even contemplating a start to easing.

The Bank of England's policy decision is due next week, and traders are pricing in the likelihood of UK interest rates starting to decline from June. (Reporting by Sruthi Shankar, Khushi Singh in Bengaluru; Editing by Sherry Jacob-Phillips, Dhanya Ann Thoppil and Jonathan Oatis)