FTSE 100 saw a slight decline on Wednesday, driven mainly by a downturn in financial stocks that offset gains in mining and energy shares ahead of developments in the U.S., where the Federal Reserve is expected to announce its interest-rate decision next week. Both the blue-chip FTSE 100 and the midcap FTSE 250 slipped 0.2% by 11:05, marking a third consecutive session of losses. Heavyweight bank shares fell nearly 1%, following gains in the previous session, while Britain’s financial regulator said it will resume processing motor finance complaints on May 31, 2026, two months earlier than scheduled, as it finalizes a compensation scheme for customers impacted by a mis-selling scandal dating back to 2007.

The scandal implicates lenders such as Lloyds, Close Brothers, and Barclays, accused of charging excessively high interest rates in car-finance agreements and including additional bonus payments. Lloyds Banking dropped 1%, Close Brothers fell 1.5%, and Barclays declined 0.6%. HSBC Holdings, which named interim chair Brendan Nelson as permanent CEO in an unexpected move, slipped 1.1%. Investment banks and brokerages also declined by 1.2%, while asset manager Intermediate Capital Group dropped 2.3%. Among individual stocks, Spire Healthcare plunged 15% after the hospital group warned that annual profit would land at the lower end of its guidance.

Sainsbury fell 4% after a term sheet revealed that Qatar’s sovereign wealth fund intends to reduce its stake in the supermarket chain. Meanwhile, energy stocks rose 0.7% as Russia confirmed that talks with U.S. officials in Moscow had failed to yield a compromise on a potential Ukraine peace agreement. Industrial metal miners gained 1%, supported by higher copper prices, with Glencore, Rio Tinto, Antofagasta, and Anglo American advancing between 1.3% and 1.8%. Precious metal miners added 1%, benefiting from stronger commodity sentiment across global markets.

Smiths Group rose 1.5% after announcing that it had agreed to sell its baggage-screening business to CVC Capital for $2.65 billion. The broader market movement reflects growing investor caution as financial stocks weighed on the FTSE despite gains in energy and mining sectors. With the Federal Reserve’s rate decision expected next week and geopolitical tensions influencing commodity prices and investor sentiment, the UK indices remain under pressure, extending their multi-session declines as traders assess regulatory developments, corporate announcements, and shifting global economic conditions.