FTSE 100 Slides As Yields Rise On Uncertainty Over Fed Policy

(RTTNews) - U.K. stocks fell in cautious trade on Wednesday, as Treasury yields moved higher amid uncertainty over whether economic circumstances have changed enough to prompt a change in aggressive monetary policy actions.

Earlier today, the Reserve Bank of New Zealand delivered a 50-bps rate hike for the fifth consecutive meeting and reiterated its resolve to break inflation back down to 2 percent, suggesting that fighting inflation is still a priority for many central banks.

In economic releases, a survey showed that British businesses suffered the sharpest contraction in activity last month.

The seasonally adjusted S&P Global/CIPS UK composite purchasing managers' index slipped to 49.1 in September from 49.6 in August.

The benchmark FTSE 100 was down 89 points, or 1.3 percent, at 6,997 after closing 2.6 percent higher on Tuesday.

Tesco fell 2.7 percent. The grocery chain predicted full-year profits at the lower end of its target range amid lingering "uncertainties" in the trading environment due to cost inflation.

Vertu Motors jumped 8 percent after posting higher revenue in its interim results for H1 2022.

Halfords rallied 3.6 percent after it agreed to acquire Lodge tyre for up to £37.2m in cash.