FTSE 100 dips 0.52% as Fed rate decision looms over volatile markets
The UK's FTSE 100 index dropped by 0.52% today as markets remained volatile. Investors stayed cautious ahead of the US Federal Reserve's interest rate decision, expected to hold steady at 3.5–3.75%.
Banking stocks fell by 1.2% after reaching record highs the day before. Meanwhile, gold mining shares climbed 2.1% as gold prices surged past $5,300 per ounce.
Healthcare giants GSK and AstraZeneca saw sharp declines of 1.9% and 2.3% respectively. Energy stocks, including Shell and BP, edged up around 1% on rising oil prices.
Luxury stocks took a hit after LVMH plunged 6.7% following weak quarterly results. Burberry and Watches of Switzerland also suffered losses. In contrast, Pets at Home jumped 5.3% after confirming its annual forecast despite weaker sales.
The Federal Reserve's meeting, concluding this evening, is widely expected to leave interest rates unchanged. Analysts had predicted this outcome well in advance, and the Fed's decision aligns with those expectations.
The market's mixed performance reflects ongoing uncertainty. With the Fed holding rates, attention now turns to how businesses and investors will respond in the coming weeks. The FTSE 100's slight decline underscores the cautious mood among traders.
