UK's FTSE 100 edges higher ahead of Fed outcome

Britain's FTSE 100 inched higher on Wednesday after recording back-to-back monthly gains, with investors looking ahead to the Federal Reserve's policy decision later in the day for hints on when the U.S. central bank will start cutting interest rates. The blue-chip index was up 0.2%, as of 0721 GMT, having recorded monthly gains of 2.4% in April and 4.2% in March. The mid-cap FTSE 250 slipped 0.2%, set for a second consecutive day of decline, if losses hold.

Britain's FTSE 100 inched higher on Wednesday after recording back-to-back monthly gains, with investors looking ahead to the Federal Reserve's policy decision later in the day for hints on when the U.S. central bank will start cutting interest rates.

The blue-chip index was up 0.2%, as of 0721 GMT, having recorded monthly gains of 2.4% in April and 4.2% in March. Market activity was likely to be light with several European bourses closed for Labour Day.

Investors are awaiting a new statement and comments from Fed Chair Jerome Powell that could give a clearer sense of how recent disappointing U.S. inflation readings have changed the expectation for interest rate cuts this year. Shares of GSK advanced 0.4% after the drugmaker raised its full-year profit forecast and said its sales would be higher in the first six months of the year.

Dragging UK midcap stocks lower, shares of Aston Martin fell 7.6% after the luxury carmaker posted a bigger-than-expected first-quarter pretax loss. The mid-cap FTSE 250 slipped 0.2%, set for a second consecutive day of decline, if losses hold.

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