FTSE 100 to fall from record high after Fed holds interest rates and Iran attacks; Rolls-Royce expects higher profits – business live
Summary
The FTSE 100 index is expected to drop after the US Federal Reserve decided to keep interest rates unchanged despite concerns about rising inflation. Oil prices increased due to tensions between the US, Israel, and Iran, putting additional pressure on markets. Meanwhile, Rolls-Royce raised its profit forecast, showing strong business performance.Key Facts
- The FTSE 100 index reached a record high of 10,951 points but fell to 10,864 points later.
- The US Federal Reserve kept interest rates the same amid rising inflation concerns.
- Oil prices rose because of conflicts involving the US, Israel, and Iran.
- Investors are worried the Fed may struggle to control inflation, leading to higher bond yields.
- The S&P 500 index closed down 1.52% after fluctuating during the Fed announcement.
- Semiconductor stocks fell sharply, with the Philly semiconductor index dropping 5.33%.
- Some UK companies like BAE Systems, Lloyds Banking Group, and Shell reported earnings.
- Rolls-Royce raised its full-year profit forecast to between £4.7 billion and £4.9 billion.
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