(Reuters) – UK’s FTSE 100 edged lower on Wednesday, after five consecutive sessions of gains, with investors maintaining caution ahead of the U.S. Federal Reserve interest-rate decision later in the day.
The blue-chip FTSE 100 fell 0.2% by 7.40 GMT.
Compass Group emerged among the top losers on the blue-chip index, dropping 4% after Exane BNP Paribas downgraded the catering company’s stock to “underperform” from “outperform.”
Metal miners weakened, with Fresnillo declining 2%. Glencore fell 1.5% and Anglo American slipped 1.3% after HSBC cut price targets on both mining companies.
In a week packed with central bank meetings, the Federal Reserve’s policy decision takes center stage in the day. The U.S. top bank is expected to keep rates unchanged, with any signals on future rate cuts to support growth being crucial.
The Bank of England’s rate is also expected to stand pat on Thursday.
Markets have priced in at least two rate cuts from both the BoE and the Fed this year.
The domestically focused FTSE 250 index was flat in the day.
IT services provider Softcat led gains on the midcap index, surging 13% after announcing expectations for 2025 operating profit growth in the low double-digit percentage range, up from its previous high single-digit forecast.
Mechanical engineering company Goodwin rose 4.7% after reporting its forward order book reached a record £300 million ($389 million) as of the end of February.
On the downside, shares of Ukraine-focused Ferrexpo fell 10.6% after the premium iron ore pellet producer reported a 30% decline in FY24 underlying core profit.
Latest data showed pay increases granted by British employers have fallen back in line with inflation for the first time since October 2023, according to human resources data firm Brightmine.
(Reporting by Ragini Mathur in Bengaluru; Editing by Shreya Biswas)
