FTSE 100 Muted as European Markets Fall

The FTSE 100 edged 0.1% higher on Wednesday morning, holding steady as broader European markets weakened ahead of the Federal Reserve’s latest interest rate decision. 

The pan-European Stoxx 600 slipped 0.14%, while Germany’s DAX fell 0.5% and France’s CAC 40 declined 0.4%.

Traders remain cautious as speculation around potential U.S. rate cuts continues to influence sentiment, leaving London equities finely balanced after a volatile month. 

The FTSE 100 is down 2.5% over the past four weeks but remains more than 18% higher year to date, with investors hoping the Fed will help drive another leg higher in global markets.

In corporate news, Anglo American and Teck Resources secured shareholder approval for their proposed merger, marking a significant milestone toward the formation of Anglo Teck. The deal would create a major new presence in global mining.

Sainsbury’s rose around 1.5% after Deutsche Bank upgraded the grocer to Buy and set a new price target of 350p, providing a lift to retail shares in early trading.

Advertising giant WPP topped the FTSE 100 risers, gaining 3.1%. Pearson rose 2.4%, while Scottish Mortgage Investment Trust and Berkeley advanced 2.3%.

On the downside, Kingfisher was the biggest faller, down 1.6%, after Deutsche Bank cut its rating on the B&Q owner to Sell. Sage slipped 1.5% and Halma fell 1.4%.