FX.co ★ FTSE 100 Dips Ahead of Central Bank Week

On Monday, London's FTSE 100 index decreased by 0.1% to 9,660, marking its lowest point since November 25, as investors prepared for a week filled with central bank announcements, including a probable third interest rate cut by the Federal Reserve on Wednesday. The focus will be on the updated projections from the Federal Open Market Committee (FOMC) amidst uncertainty regarding the 2026 monetary policy. Concurrently, UK statistics revealing an acceleration in wage growth could influence the outlook of the Bank of England. Findings from a survey conducted by the Recruitment & Employment Confederation and KPMG indicated that starting salaries for permanent positions increased at the fastest rate in five months, even as the pace of hiring slowed and the number of jobseekers rose, underscoring ongoing wage pressures. These results align with insights from the Bank of England’s Decision Maker Panel, which illustrate sustained wage pressures in the face of a weakening labor market. In the corporate sphere, Unilever saw a nearly 4% decline to the lower end of the index following the completion of its Magnum spinoff. Other significant fallers included Unite Group, Barratt Developments, Redrow, Frasers Group, and B&M European Value, each experiencing a drop of over 2%.