FTSE 100 drifts lower ahead of latest Federal Reserve interest rate decision
London’s top index finished 22.89 points, or 0.28%, lower to end the day at 8,121.84.
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Your support makes all the difference.The FTSE 100 took another step back on Wednesday as its recent rally continued to stutter amid another drop in oil prices and uncertainty around interest rates.
Market traders across Europe were largely cautious on Wednesday as their attentions were firmly focused on the latest Federal Reserve meeting in the US in the hope for further guidance over when rates might be cut.
London’s top index finished 22.89 points, or 0.28%, lower to end the day at 8,121.84.
Adam Vettese, analyst at investment platform EToro, said: “The FTSE 100 has given up its gains from earlier in the trading session.
“Investors are understandably a little nervy after yesterday’s big sell off on Wall Street, with the latest rate decision from the Federal Reserve due later.
“Wage data released on Tuesday came in hotter than expected, just the latest measure adding impetus to the ‘higher for longer’ rate argument.”
Elsewhere in Europe, the other main indexes were also lower, particularly hampered by notable falls for car manufacturers amid more cuts at competitor Tesla.
The German Dax index was down 1.03% at the close and the Cac 40 in France ended down 0.99%.
Meanwhile, the pound was down 0.09% at 1.248 US dollars and was 0.13% lower at 1.169 euros at market close in London.
In company news, drugmaker GSK was among the day’s key risers after it lifted its profit forecasts for the year on the back of strong demand for respiratory virus and shingle vaccines.
The firm said it therefore expects to see annual core operating profits grow by between 9% and 11% in 2024, improving upon its previous forecast of 7% to 10%.
As a result, shares moved 1.9% higher to 1,705p by the close of play.
Aston Martin Lagonda shares dropped after British car firm saw losses widen heavily.
It told shareholders pre-tax losses nearly doubled to £138.8 million in the first quarter, as the luxury car maker slowed down production of several older car models ahead of a clutch of planned launches later this year.
It moved 6.75% lower to 138.2p.
Elsewhere, handbag specialist Mulberry was lower after it revealed a hit to full-year sales as luxury shoppers cut back on their spending.
Shares were down 9.3% to 97.5p after it recorded a 4% drop in sales for the past year amid reduced trading in the UK.
Alpha Financial Markets Consulting surged after it confirmed investment giants Bridgepoint and Cinven have both approached the London-listed firm about possible takeovers.
It saw shares lift by 38.8% to 465p as a result.
The price of oil continued its recent downwards trajectory as US secretary of state Antony Blinken met Israel’s President Netanyahu amid calls for a ceasefire to its current conflict.
A barrel of Brent crude oil was down by 2.43% to 80.98 US dollars as markets were closing in London.
The biggest risers on the FTSE 100 were GSK, up 32p to 1,705p, Unite Group, up 12p to 940p, DCC, up 70p to 5,555p, Severn Trent, up 31p to 2,498p, and Tesco, up 3.7p to 300p.
The biggest fallers on the FTSE 100 were JD Sports, down 3.45p to 112.15p, Ashtead, down 168p to 5,674p, Ocado, down 10p to 343.1p, Haleon, down 8.5p to 331p, and Howden Joinery, down 19p to 857p.