The FTSE 100 closed marginally lower on Wednesday, fading into the end of the session as stronger-than-expected US inflation data weighed on sentiment ahead of Nvidia’s closely watched results.
London’s blue-chip index fell 8.04 points, or 0.1%, to 10,878.12. The FTSE 250 performed better, gaining 0.2% to 24,897.84, while the AIM All-Share slipped 0.1% to 814.90.
US inflation provided the day’s main macroeconomic focus. The PCE price index rose 3.7% year-on-year in July, slightly ahead of the 3.6% consensus forecast, while core PCE remained at 3.3%.
The figures reinforced expectations that the Federal Reserve will remain cautious over monetary policy. Markets continue to price the possibility of a 25-basis-point rate increase before the end of the year, although many economists still expect rates to remain unchanged.
Sterling weakened following the figures, falling to around $1.3590, while the US 10-year Treasury yield edged up to 4.66%.
Attention now shifts firmly to Nvidia, which publishes its quarterly results after the Wall Street close. Bank of America expects another sales beat and guidance increase but believes investors will pay particular attention to the chipmaker’s balance sheet and potential shareholder returns.
In London, weaker oil prices weighed on energy majors. Brent crude traded around $88.09 a barrel, with BP falling 1.1% and Shell losing 0.5%, as discussions involving Iran and Oman raised hopes of improved access through the Strait of Hormuz.
Sage was the FTSE 100’s biggest faller, dropping 3.8% after US rival Intuit issued weaker-than-expected FY27 revenue guidance.
Among mid-caps, Hochschild Mining jumped 6.3% after first-half pre-tax profit surged to $365.8 million, helped by sharply higher realised gold and silver prices.
Gold itself retreated to around $4,597 an ounce, continuing its pullback following its recent strong run.
The FTSE 100’s leading risers included JD Sports, IG Group and British American Tobacco, while Sage, Compass, 3i and AstraZeneca were among the largest fallers.
