FTSE 100 slides as Fed pauses rates and Iran tensions push oil higher

The FTSE 100 is expected to open about 0.6% lower after the US Federal Reserve chose to maintain its policy rate, sparking worries about lingering inflation. Traders were further unsettled by renewed US-Israeli attacks on Iran, which have boosted oil prices and pushed bond yields higher, adding pressure on equities. Deutsche Bank’s Peter Sidorov blamed the sell-off on the Fed’s “on-hold” decision and scant detail from Chair Kevin Warsh, a Trump appointee.

The S&P 500 also closed down, while semiconductor stocks fell sharply. In the UK, a roster of earnings—including BAE Systems, Lloyds Banking Group, London Stock Exchange Group and Shell—could cushion the dip, and Rolls-Royce announced upgraded profit guidance of £4.7-£4.9 billion and free-cash-flow of £3.8-£4.0 billion for the year. Later today, data on German and Eurozone growth, UK interest rates and US economic indicators are slated for release.