UK's FTSE 100 Dips as Investors Eye U.S. Inflation Data

The UK's FTSE 100 fell to a two-week low amid anticipation for U.S. inflation data. Ashtead was the biggest drag after a downgrade. Medical equipment firms also declined, while gold miners gained. Investors are keenly focused on central banks' monetary policy decisions in the coming week.

The UK's FTSE 100 index dropped to a two-week low on Wednesday as investors brace for upcoming U.S. inflation data crucial for the Federal Reserve's December rate cut decisions. Ashtead led the decline after a downgrade from Goldman Sachs, pushing the stock to a four-month low.

The midcap FTSE 250 also fell by 0.2% as the biggest impact came from Ashtead's 5.9% drop. Medical equipment companies posted a sectoral loss of 1.3%, while real estate trusts decreased by 0.8%. Conversely, gold miners advanced by 1% as gold prices neared a two-week peak amid growing geopolitical tensions and prospects of U.S. rate cuts.

Global investors are focused on the U.S. consumer price index report, which may indicate forthcoming inflation and influence the Federal Reserve's monetary decisions. The Bank of England and European Central Bank's impending rate decisions are also pivotal for market trends.

(With inputs from agencies.)