London’s FTSE 100 extended its decline on Wednesday, closing down 0.8% at 10,320 points, as investors tempered expectations for additional interest rate cuts from the Bank of England this year. Losses were broad-based, with blue-chip names including AstraZeneca, HSBC, and Rolls-Royce among the main drags on the index. Retailers, however, found some support following upbeat earnings from Inditex.
While oil prices have pulled back from levels above $100 per barrel, the earlier spike has already reshaped market expectations. Money markets are now assigning only a slim probability to any rate cuts in 2026.
In corporate news, insurer and investment manager Legal & General fell nearly 6% after its solvency ratio missed forecasts, despite posting higher annual profits and unveiling a £1.2 billion share buyback programme.