FTSE 100 Slips as Banks and Healthcare Weigh on London Market

London shares edged lower on Wednesday as losses in major healthcare and banking stocks dragged the blue chip index into negative territory. The FTSE 100 closed down around 0.4 percent, reflecting cautious investor sentiment as markets assessed corporate earnings and awaited a key policy update from the United States. Trading floors at the London Stock Exchange saw mixed performances across sectors, with defensive and rate sensitive stocks under pressure. In contrast, domestically focused companies helped limit broader losses, highlighting a growing divergence between global facing firms and those tied more closely to the UK economy. Investors remained cautious amid ongoing geopolitical uncertainty and concerns over the outlook for interest rates, with global central bank decisions continuing to shape risk appetite in London and other major financial centres.

Healthcare stocks were the weakest performers of the session, sliding sharply and weighing heavily on the benchmark index. Shares in major pharmaceutical companies came under pressure, reflecting both sector specific concerns and broader market rotation away from defensives. Banking stocks also retreated after recently touching record highs, with investors locking in gains amid uncertainty over the path of global interest rates. Several high profile lenders saw declines as traders reassessed valuations following a strong start to the year. The pullback in banks and healthcare offset gains elsewhere, reinforcing the cautious tone that has characterised recent London trading sessions as markets remain sensitive to shifts in monetary policy expectations.

Elsewhere in the market, the FTSE 250 rose modestly, reaching its highest level in two years during the session. The index, which is more exposed to the domestic economy, has benefited from improving sentiment around UK growth prospects and easing inflation pressures. Precious metal mining stocks were among the top gainers, supported by a surge in gold prices to record levels, which boosted expectations for earnings across the sector. Energy shares also advanced, tracking higher oil prices that reached their strongest levels since late September. Investors appeared more willing to back commodity linked stocks as a hedge against volatility, providing some balance to the losses seen in financials and healthcare.

Luxury related stocks faced renewed pressure following disappointing results from European peers, which dampened sentiment across the sector. UK listed brands declined as concerns grew about global consumer demand, particularly in key overseas markets. Attention now turns to upcoming corporate earnings reports, which investors hope will provide clearer insight into business conditions in the months ahead. Market participants are also focused on the US Federal Reserve’s policy decision later in the day, with expectations largely pointing to interest rates being held steady. The outcome, and any signals on future policy direction, is likely to influence London markets as traders position themselves for the next phase of global monetary policy.