After a positive couple of days, the FTSE 100 was in consolidation mode on Wednesday.
AJ Bell investment director Russ Mould said: “All eyes will be on central banks on both sides of the Atlantic as both the US Federal Reserve and Bank of England get ready to deliver their rate decisions over the next 24 hours or so.
“While we have a good idea of the quantum of increase both parties will deliver, it will be all about the mood music. Investors are like thirsty travellers in the desert, hoping for even the tiniest drop of comfort to suggest the rate cycle may have run its course.”
Meanwhile a profit warning from wind turbine maker Vestas Wind Systems will provide a jolt to lots of managers running ESG-related funds as it has been a popular stock for green strategies.
The longer-term outlook for renewables is positive but in the short term, Vestas’ warning suggests energy security is being prioritised over the energy transition.