U.K. stock markets traded in a mixed fashion Tuesday in a cautious mood as investors digested the lack of an agreement to raise the U.S. debt ceiling as well as a series of economic data releases.

At 04:15 ET (08:15 GMT), the benchmark FTSE 100 index traded flat, the mid-cap FTSE 250 traded 0.2% higher, while the combined FTSE 350 fell 0.1%.

A meeting between U.S. President Joe Biden and House Republican Speaker Kevin McCarthy broke up late Monday without an agreement on how to raise the U.S. government’s $31.4 trillion debt ceiling.

Investors around the globe are watching these events closely as the U.S. defaulting on its debt obligations would have severe repercussions on the global economy.

Back in the U.K., high inflation resulted in Britain posting a larger-than-expected budget deficit in April, with public sector net borrowing rising to £25.56 billion (£1 = $1.2405), almost £12 billion pounds more than in April 2022, data showed earlier Tuesday.

That said, there was some minor good news, as the country’s grocery inflation eased slightly for the second month in a row in May to 17.2%, from 17.3% in April, according to data from market research company Kantar.

Flash PMI figures for May are scheduled for release later in the session and are expected to show strength in services but a downbeat manufacturing sector.

Turning to the corporate sector, BT Group (LON:BT) stock rose 0.3% after Altice UK, a company owned by billionaire Patrick Drahi increased its stake in the telecoms giant to approximately 24.5%, from 18%.

Ninety One (LON:N91) stock rose 0.6% after the asset manager, formerly known as Investec, announced that its directors had purchased £250,000 worth of shares, in a show of confidence in the company.

On the flip side, Pennon Group (LON:PNN) stock fell 2.1% after the water services company said that U.K. regulators have launched an investigation into its South West Water unit, over the accuracy of information reported by the company for its performance on leakages.