Miners drag FTSE 100 lower as U.S. inflation data boosts slower Fed rate-hike hopes

Miners slipped 0.6%, as copper prices fell on worries that the Fed's monetary policy would temper demand for the red metal. Inflation in the United States eased in November, raising hopes among traders that the Fed might ease to a 50 basis point rate hike later in the day. Inflation in the UK fell from its 41-year peak last month, to 10.7%.

UK's blue-chip FTSE 100 index fell on Wednesday, dragged down by the losses in miners' shares, as lower-than-expected U.S. inflation data raised optimism for slower pace of the Federal Reserve's interest rate hikes.

The export-oriented FTSE 100 index fell 0.3%, while the domestically-focused FTSE 250 mid-cap index shed 0.5% by 08:22 GMT. Miners slipped 0.6%, as copper prices fell on worries that the Fed's monetary policy would temper demand for the red metal.

Inflation in the United States eased in November, raising hopes among traders that the Fed might ease to a 50 basis point rate hike later in the day. HSBC, on the other hand, rose 0.2% as the lender said it will no longer finance new oil and gas fields, an update to its energy policy.

BT Group jumped 2.5% after the telecoms and network provider submitted its new Equinox 2 wholesale fibre offer to the British regulator Ofcom. Inflation in the UK fell from its 41-year peak last month, to 10.7%.