FX.co ★ FTSE 100 Falls from 2-Week High

On Wednesday, the FTSE 100 experienced a decline following a two-day surge that had brought it to its highest levels in two weeks. This downturn mirrored broader weaknesses seen across European markets. AB Foods witnessed a steep drop of over 12% due to disappointing sales figures from Primark and ongoing challenges in its sugar division, which unsettled investors. Analysts pointed to fragile like-for-like growth and the lack of forward guidance as key concerns, especially considering Primark's significant contribution to overall profits. Meanwhile, Vistry Group saw its shares fall nearly 5%, even though it reported results that matched forecasts and showed a reduction in debt. The company cautioned that demand in the housing sector remains susceptible to economic challenges. Politically, UK Labour leader Keir Starmer took steps to enhance oversight of economic policy, while Britain resumed trade negotiations with China. On the global stage, a weaker-than-expected US producer price index report has increased expectations for rate cuts by the Federal Reserve. Markets have fully priced in a reduction next week, with potential for further easing later in the year.