UK's FTSE 100 flat; SSP Group shines on upbeat outlook

LONDON: UK's FTSE 100 traded flat on Tuesday as uncertainties surrounding the U.S. debt deal dented sentiment, while snack chain SSP Group hit a nearly three-month high on an upbeat profit outlook.

The mid-cap FTSE 250 rose 0.2%, aided by a 3.1% rise in Upper Crust owner SSP Group Plc after the snack chain forecast annual profit at the upper end of its expectations. "Finally, after a few chaotic years for the business, SSP is firmly in recovery mode with revenue, profit and margins moving higher," said AJ Bell investment director Russ Mould.

"We’re not quite there yet for dividends, but the company hints it is only a matter of time before the shareholder reward is reinstated." On the other hand, the internationally-focused FTSE 100 remained flat amid investor caution concerning the ongoing U.S. debt ceiling talks.

UK equities' performance has been largely lacklustre since late April, with multiple factors - including mixed corporate results and the U.S. debt deal impasse - clouding investors' moods. S&P Global's Composite Purchasing Manager's Index - spanning both the services and manufacturing sectors - dropped to 53.9 from the one-year high of 54.9 recorded in April.

Among other movers, billionaire Patrick Drahi increased his stake in BT Group Plc to 24.5% but reiterated that he does not plan to fully take over the telecom giant. Shares of the group rose 0.4% in volatile trading. Cranswick Plc rose 4.7% after the meat producer reported a rise in annual profit on strong demand.

Pennon Group Plc shed 1.9% after industry regulator Ofwat said it was investigating the group's South West Water unit regarding its leakage performance. Market researcher Kantar said domestic grocery inflation eased slightly for the second-straight month in May, while the International Monetary Fund added it no longer expects the domestic economy to fall into a recession this year.