(Reuters) – UK’s benchmark FTSE 100 index was barely changed on Thursday, as gains in the personal goods sector were limited by losses in real estate, while Frasers dropped to an over two-year low after lowering its annual profit forecast.

The blue-chip FTSE 100 was up 0.1%, while the midcap FTSE 250 was down 0.1% at 1016 a.m. GMT.

The personal goods sector gained 1.1%, led by Watches of Switzerland which jumped 8.5% to a more than ten-month high after reaffirming its 2025 guidance.

Meanwhile, Frasers dropped 13.4% to the bottom of the FTSE 100 after the retailer said a drop in consumer confidence sparked by the new Labour government’s tax hiking budget had forced it to lower its annual profit guidance.

Many businesses have complained that the government’s move to hike social security contributions and the minimum wage will lead to higher costs, lower investment and ultimately weaker economic growth.

Real estate led sectoral losses, falling 1.1% as British Land declined 4.5% after Berenberg cut its target price on the commercial property firm to 480p from 500p.

Future topped the midcap index, soaring 12.4%, after the publishing firm launched a new 55 million pound ($70 million) share buyback.

Investors will assess comments from Bank of England’s executive director for payments Victoria Cleland at 1450 GMT.

Additionally, BoE monetary policy committee member Megan Greene will speak at an FT event on sustained growth at 1700 GMT.

On the political front, French Prime Minister Michel Barnier will resign on Thursday after far-right and leftist lawmakers voted to topple his government, plunging the euro zone’s second-largest economy deeper into political crisis.

France’s benchmark index CAC 40 was up 0.4%.

Across the Atlantic, Federal Reserve Chair Jerome Powell on Wednesday said the U.S. economy was in good shape and appeared to signal his support for a slower pace of interest-rate cuts ahead.

(Reporting by Nikhil Sharma; Editing by Varun H K)