Published by Global Banking & Finance Review®
Posted on December 11, 2024
2 min readLast updated: January 27, 2026
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FTSE 100 fell to a two-week low as investors await US inflation data, impacting Federal Reserve's rate cut decisions. Ashtead's stock dropped after a downgrade.
(Reuters) - The UK's benchmark FTSE 100 fell to a two-week low on Wednesday, with Ashtead extending declines, while investors awaited U.S. inflation data that could cement the Federal Reserve's December rate cut.
The blue-chip FTSE 100 and the midcap FTSE 250 fell 0.2% each at 0930 GMT.
Ashtead was the biggest drag on the blue-chip index, falling 5.9% to a more-than-four-month low after a 14% drop in the previous session, as Goldman Sachs downgraded the equipment rental company to "neutral" from "buy". At least two other brokerages also cut their price target on the stock.
Medical equipment companies led the sectoral losses, dropping 1.3%, while real estate investment trusts declined 0.8%.
In contrast, precious metal miners added 1% as gold prices hovered near a two-week peak due to escalating geopolitical tensions and U.S. rate cut expectations. [GOL/]
Investors worldwide focussed on a U.S. consumer price index report, due later in the day, for insight into inflation and the ensuing Fed's policy.
Traders widely expect a quarter-point cut at the central bank's policy meeting next week.
Meanwhile, the Bank of England is expected to keep interest rates on hold next week, moving more slowly to cut borrowing costs than central banks in Europe and the U.S.
Friday's gross domestic product estimate for October will be a key economic indicator before BoE's decision.
Additionally, the European Central Bank's rate decision on Thursday is also on the radar, with markets anticipating a reduction in borrowing costs.
Domestic investors will also assess a reading from the RICS Housing Survey, due later in the day.
Among other stocks, Kainos Group was the top gainer on the mid-cap index, soaring 7%, after the IT software provider re-appointed Brendan Mooney as chief executive officer.
Additionally, SSP Group added 5%, after Upper Crust owner announced Indian listing plans for its airport lounge operator Travel Food Services.
(Reporting by Nikhil Sharma; Editing by Vijay Kishore)
The article discusses the FTSE 100's decline ahead of US inflation data and its potential impact on Federal Reserve's rate decisions.
Ashtead's stock fell due to a downgrade by Goldman Sachs and other brokerages cutting their price targets.
Precious metal miners gained 1% as gold prices rose amid geopolitical tensions and rate cut expectations.
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