UK stocks have recovered some of their earlier losses after it was revealed today that inflation held steady at 2% in June.

At 1150, the benchmark FTSE 100 index was down 10 points, or 0.12%, at 7,567.83.

LARGE AND MID CAP RISERS AND FALLERS

BP and Shell fell 2.1% to 532p and 0.5% to £25.79, respectively, while Premier Oil shed 1.7% to 79p, even as it boosted first-half production and lowered its cost guidance.

Mining giant BHP gained 0.2% to £20.34, despite it reporting a 1% fall in fourth-quarter iron ore production owing to a cyclone in Australia.

The fall was nevertheless in line with the company's revised guidance and it also exceeded its guidance for petroleum output.

Fellow miner Fresnillo shed 1.5% to 907p as it cut its full-year production guidance thanks to lower-than-expected ore grades and construction delays.

Chemicals company Johnson Matthey dropped 3.8% to £32.58 after reporting flat sales in a first quarter trading update.

Its full year guidance remains unchanged but the company said it expects performance to be 'more heavily weighted to the second half'.

TalkTalk Telecom added 4% to 110p after the addition of new broadband customers helped it grow its headline revenue in the first quarter.

Over 50s insurer Saga bounced 8.7% to 64.6p on news that activist investor Elliott Advisors has taken a 5.1% stake in the business.

Construction group Galliford Try rallied 6.8% to 653p on the back of an upbeat first-half trading statement.

Consumer goods group UP Global Sourcing, which trades as Ultimate Products, jumped 15.8% to 84p as it upgraded its annual profit guidance owing to better-than-expected sales in the second half.

Premier Foods added 0.3% to 37.5p owing to higher revenue in the first quarter, underpinned by sales of the company's Ambrosia and Sharwood's brands.

Water utility Severn Trent declined 0.5% to £19.96, despite announcing that it had made a 'good' start to the new financial year and expected to deliver a full-year result in line with prior guidance.

SMALL CAP RISERS AND FALLERS

Premium chocolatier Hotel Chocolat rose 1.7% to 361p after it announced a 14% increase in revenue to £132m for the year to 30 June.

Internet of Things investor Telit Communications fell 2.3% to 166p on guiding for a fall in first-half revenue owing to the sale of its automotive business.