The FTSE 100 traded largely flat on Wednesday as investors absorbed fresh UK inflation data and awaited the Federal Reserve’s policy decision for further guidance on the global interest rate outlook. Falling oil prices continued to pressure the index, with energy heavyweights Shell and BP each losing around 1%. BAT and Rio Tinto also declined by more than 1%, while Unilever slipped about 0.7%.
In contrast, Rolls-Royce advanced roughly 1.5%, and AstraZeneca also traded higher. UK markets pared back expectations for additional Bank of England rate hikes this year after inflation unexpectedly held steady in May, reinforcing a more cautious stance among some policymakers ahead of Thursday’s meeting.
Brent crude dropped to a three-month low after sliding 15% over four sessions, amid expectations that a potential US–Iran agreement to reopen the Strait of Hormuz could increase supply and ease inflationary pressures. Investors are now shifting their attention to the Federal Reserve’s latest decision and its guidance on the future path of monetary policy.
