The UK’s blue-chip index experienced a decline on Wednesday, influenced by losses in the banking and healthcare sectors, as investors analyzed corporate earnings while anticipating the policy decision from the U.S. Federal Reserve. The FTSE 100 fell 0.4% by 1056, while the domestically focused FTSE 250 bucked the trend, rising 0.1% and reaching its highest level since January 2022 earlier in the session. Healthcare stocks were the biggest drag on the FTSE 100, tumbling 1.9%. Pharmaceutical giants GSK and AstraZeneca experienced declines of 1.9% and 2.3%, respectively.
Banks retreated 1.2% after hitting record highs in the previous session. Investec slid 1.6%, while HSBC Holdings and Close Brothers both fell over 1%. Luxury stocks experienced downward pressure after French luxury conglomerate LVMH plunged 6.7% following disappointing fourth-quarter results. Burberry declined 2.5%, while Watches of Switzerland experienced a decrease of 2%, respectively. However, precious metal miners rose 2.1%, rebounding from Tuesday’s losses as gold extended its rally above $5,300 per ounce.
Energy stocks experienced a 1% increase, buoyed by oil prices reaching their peak since late September. Majors Shell and BP each gained about 1%. According to Caribbean energy minister Roodal Moonilal, the companies are pursuing U.S. licenses to extract natural gas from fields located in Trinidad and Tobago as well as Venezuela. Market participants are currently focused on forthcoming corporate earnings as they seek more definitive indicators regarding business conditions in the context of geopolitical tensions and trade uncertainties. Focus was directed towards the Federal Reserve’s policy update scheduled for later in the day.
The prevailing sentiment among traders is that the U.S. central bank will maintain its current interest rate levels. Pets at Home opened new tab jumped 5.3% after the pet care retailer maintained its full-year profit forecast despite reporting lower third-quarter revenue, attributed partly to price cuts as part of its retail turnaround strategy.