The FTSE 100 is expected to snap its winning streak on Thursday, as global sentiment cooled following the US Federal Reserve’s cautionary outlook on future rate cuts.
London’s blue-chip index is called 10 points lower in early futures trading after closing 59.4 points higher at 9,756.1 on Wednesday — extending a run that has lifted the benchmark over 400 points (4.3%) since the end of last month.
As anticipated, the Federal Reserve delivered a 25-basis-point rate cut, but also announced it will end quantitative tightening (QT) from 1 December, opting to reinvest maturing Treasuries rather than allow them to roll off.
However, Fed Chair Jerome Powell tempered investor optimism, warning that “a further reduction of the policy rate at the December meeting is not a foregone conclusion.” The remarks surprised traders who had priced in a 90% chance of another cut, sending the US two-year Treasury yield up 13bps to above…
