BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.K. stocks fell in cautious trade on Wednesday ahead of the minutes from the Fed's latest meeting slated for release later in the day.
U.S. Treasury yields hit multiyear highs after Fed governor Lael Brainard said overnight that she expected a combination of interest rate hikes and a rapid balance sheet runoff to take monetary policy to a more neutral position later this year.
Markets also await fresh sanctions to punish Moscow over alleged atrocities in Ukraine, something Ukraine President Volodymyr Zelensky described as 'war crimes'.
The European Commission has already proposed new sanctions including banning Russian coal imports, raising worries about a new global supply challenge.
The benchmark FTSE 100 dropped 42 points, or 0.6 percent, to 7,571 after rising 0.7 percent on Tuesday.
Housebuilder Redrow lost 1.2 percent after saying it would make an additional provision of £164mln for cladding repairs.
Hyve Group rose about 1 percent. The events organizer is selling its Russian operations to Rise Expo Ltd. for up to £72 million.
Beverages firm Diageo was up 0.8 percent after pricing US$2.9bln in euro- and sterling dominated bonds.
Imperial Brands rallied 3 percent. The tobacco company said it remains on track to deliver full-year results in line with guidance issued on March 15.
In economic releases, the U.K. construction sector logged another robust growth, survey results published by S&P Global showed earlier in the day.
The Chartered Institute of Procurement & Supply construction Purchasing Managers' Index came in at 59.1 in March, unchanged from February despite escalating inflationary pressures and concerns about the impact of the war in Ukraine. The reading was forecast to fall to 57.8.
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