UK's FTSE edges lower on Fed fears; Ashtead rises

UK's exports-oriented FTSE 100 edged lower after strong U.S. data fanned fears that the Federal Reserve could persist with its aggressive rate hikes, while Ashtead Group jumped on raising dividend. Strong U.S. services data along with a rebound in employment in November reflected underlying momentum in the economy could give reason to the Fed to continue raising rates.

UK's exports-oriented FTSE 100 edged lower after strong U.S. data fanned fears that the Federal Reserve could persist with its aggressive rate hikes, while Ashtead Group jumped on raising dividend.

Strong U.S. services data along with a rebound in employment in November reflected underlying momentum in the economy could give reason to the Fed to continue raising rates. The FTSE 100 fell 0.08%, but fared better than its European peer that fell 0.1% at 08:06 GMT.

Ashtead Group Plc rose 3.9% after the equipment rental firm raised its interim dividend by 20%. British life insurer Phoenix climbed 1% after it set an incremental new business long-term cash generation target of around $1.83 billion by 2025.

Meanwhile, the domestically-oriented FTSE 250 fell 0.1%. The construction manufacturing index for the month of November is expected to show a contraction from the previous month, as per a Reuters poll. Data is expected at 09:30 a.m. GMT.