FTSE 100 slightly rises as investors await rate decisions

The UK’s FTSE 100 index closed slightly higher on Wednesday as investors await important decisions on interest rates in the UK and the US. The index rose by 1.43 points, or 0.02%, finishing the day at 8,706.66. Many analysts expect that the Bank of England will keep interest rates steady at 4.5%. This decision comes as policymakers consider rising inflation and trade tensions. In the US, the Federal Reserve's announcement is also being closely watched, as major US stock indexes showed gains ahead of it. In Europe, the mood was mixed. The Cac 40 index in Paris increased by 0.7%, while Germany’s Dax index fell by 0.4%. Meanwhile, the British pound weakened against the US dollar but strengthened against the euro. The pound fell 0.2% to 1.297 dollars and gained about 0.3% to 1.192 euros. In company news, the catering company Compass Group saw its shares drop nearly 5% after a downgrade from a broker. Its shares ended the day 4.8% lower. On the other hand, investment manager M&G announced it would increase its dividend payouts, reflecting confidence in its future. M&G's shares rose by 2% despite reporting significant outflows. Among the top performers on the FTSE 100 were Games Workshop, Informa, JD Sports, Melrose Industries, and M&G. They all experienced gains. Conversely, the largest declines included Compass Group, Croda, Diageo, GSK, and Schroders, with Compass Group facing the steepest drop.