FTSE 100 trades flat after UK inflation data release, energy stocks under pressure
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- The FTSE 100 index remained flat on Wednesday as investors digested UK inflation data and awaited the Federal Reserve's policy decision to look for further signals about global interest rate prospects. Falling oil prices dragged the index down, with energy giants Shell and BP both dropping around 1%.
- British American Tobacco and Rio Tinto also fell more than 1%, while Unilever declined by about 0.7%. On the upside, Rolls-Royce rose about 1.5%, and AstraZeneca also moved higher.
- The UK market lowered expectations for a Bank of England rate hike this year, as May inflation unexpectedly held steady, supporting a more cautious stance by some policymakers ahead of Thursday's meeting. Meanwhile, Brent crude dropped to a three-month low, as the market anticipates that a US-Iran agreement to reopen the Strait of Hormuz will increase supply and ease inflation pressure.
- Investors are now focusing on the Federal Reserve's latest decision and its outlook on policy prospects.
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