London's FTSE 100 is poised to open lower, retreating from its recent record highs, as global markets digest the Federal Reserve's decision to maintain interest rates at current levels.
The central bank's pause comes amid a complex backdrop of persistent inflationary pressures and heightened geopolitical uncertainty, leaving investors to reassess the trajectory of monetary policy for the remainder of the year.
The Fed's choice to hold rates steady, rather than signaling an imminent cut, has reinforced the "higher for longer" narrative that has weighed on equity valuations.
With inflation data remaining sticky, policymakers appear prioritized price stability over growth support, a stance that continues to pressure rate-sensitive sectors and dampen risk appetite across global exchanges.
Compounding the macroeconomic caution is a sharp escalation in geopolitical risks.
Recent military strikes in Iran, followed by stern warnings from US President Donald Trump, have reignited fears of supply chain disruptions, particularly in energy markets.