The FTSE 100 missed out on a global equity rally on Wednesday as pharma stocks and other overseas earners weighed on the index amid hopes of a US interest rate cut.
London’s leading index was 0.4% in the red at the time of writing, underperforming the German Dax’s 0.2% gains and a surging 2% rally in the French CAC.
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The softer session for the FTSE 100 also ran counter to S&P 500 futures, which pointed to a higher cash open.
The key driver of stocks on Wednesday was the uptick in hopes of US interest rate cuts after a speech by the Federal Chair that signalled rate setters were preparing to lower borrowing costs.
“Markets have been lifted by the rekindling of rate cut expectations in the US after comments from Fed chair Jerome Powell which highlighted sluggish hiring were taken as an indication that not one, but two further cuts were very much on the table for 2025,” says Danni Hewson, AJ Bell head of…
