FTSE 100 falls amid Fed outlook and sector losses

By 10:16 GMT the FTSE 100 had dropped 0.94% to 10,410.01 and the mid‑cap FTSE 250 was down 0.63%. Market participants were waiting for the Bank of England decision later in the day, when the Bank Rate is widely expected to be left at 3.75%, and were also responding to guidance from the US Federal Reserve after it kept rates unchanged and nine policymakers indicated they expect at least one hike this year.

Financial shares were major contributors to the decline. London Stock Exchange Group fell 3.5% following a downgrade to neutral from an investment analyst, and investment company 3i Group slipped 4.3%. The financial sector posted broad weakness across large-cap names.

Mining and materials stocks also underperformed. The precious metals mining subsector fell about 5%, with Fresnillo down 5.8% and Hochschild Mining off 7%. The declines in miners added pressure to the index.

Retail and consumer-facing companies moved lower in parts of the market. Tesco slipped 2.2% after reporting a slowdown in first-quarter sales growth. Rate-sensitive homebuilders declined 2.6%, and Persimmon was the weakest FTSE 100 performer, down 6.4% on the session.

A limited number of stocks gained ground. Intertek rose 1.5% after agreeing to be acquired by Swedish private equity firm EQT. Informa advanced 2.3% after issuing a forecast for stronger growth in 2027.

Oil and gas majors traded lower as crude prices fell to their lowest levels since the start of the Iran war; both BP and Shell were down about 1.5% during the session.

Investors continued to focus on how central bank policy decisions will affect borrowing costs, corporate earnings and economic growth, positioning portfolios ahead of the Bank of England announcement while monitoring further signals from the US Federal Reserve.