London stock indexes fell on Wednesday after UK inflation data and ahead of a key Federal Reserve policy decision. The FTSE 100 and midcap index both dropped 0.2% after reaching early September highs the previous day.
UK inflation in August remained at 2.2%, as expected, though services inflation rose to 5.6%, signaling ongoing inflation pressures. This data dampened hopes of a rate cut by the Bank of England in its upcoming meeting.
The British pound rose against the dollar, impacting export-driven companies. Investors are also focused on the Fed, with uncertainty around the size of a potential interest rate cut.
Reckitt Benckiser shares gained 2% after reports of talks to sell its homecare assets, while miners fell 0.8% as metal prices eased.