UK's FTSE 100 inched lower on Wednesday as financials stocks declined, offsetting gains in mining and energy shares ahead of the U.S. Federal Reserve's decision on interest rates next week. Both the blue-chip FTSE 100 (.FTSE), opens new tab and the midcap FTSE 250 (.FTMC), opens new tab dipped 0.2% by 11:05 GMT, on track to log declines for the third straight session.
Heavyweight banks shares (.FTNMX301010), opens new tab dropped almost 1%, after gains in the previous session.
Britain's financial regulator said it will lift the pause on handling motor finance complaints on May 31, 2026, two months earlier than initially proposed, as it finalises a compensation scheme for those hit by a mis-selling scandal.
The scandal, which dates back to 2007, involves lenders such as Lloyds (LLOY.L), opens new tab, Close Brothers (CBRO.L), opens new tab and Barclays (BARC.L), opens new tab, which are accused of using excessively high interest rates in car-finance arrangements and including extra bonus payments.
Lloyd's Banking (LLOY.L), opens new tab lost 1%, while Close Brothers (CBRO.L), opens new tab and Barclays (BARC.L), opens new tab declined 1.5% and 0.6%, respectively.
HSBC Holdings (HSBA.L), opens new tab, which named interim chair Brendan Nelson as permanent CEO in a surprise move, fell 1.1%. Investment banks and brokerages (.FTNMX302020), opens new tab declined 1.2%. Asset manager Intermediate Capital Group (ICGIN.L), opens new tab declined 2.3%. Among individual stocks, Spire Healthcare (SPI.L), opens new tab plunged 15% after the hospital group warned annual profit would come in at the bottom end of guidance. Sainsbury (SBRY.L), opens new tab fell 4% after a term sheet showed that Qatar's sovereign wealth fund plans to reduce its stake in the supermarket chain. On the flip side, energy (.FTNMX601010), opens new tab stocks gained 0.7% as Russia said talks with U.S. officials in Moscow failed to reach a compromise on a potential Ukraine peace deal.
Industrial metal miners (.FTNMX551030), opens new tab rose 1%, tracking higher copper prices. Glencore (GLEN.L), opens new tab, Rio Tinto (RIO.L), opens new tab, Antofagasta (ANTO.L), opens new tab and Anglo American (AAL.L), opens new tab gained between 1.3% and 1.8%. Precious metal miners (.FTNMX551030), opens new tab added 1%.
