FTSE 100 to fall from record high after Fed holds interest rates and Iran attacks; Rolls-Royce expects higher profits - business live

London’s FTSE 100 is set to fall at the open after the US Federal Reserve held interest rates steady, even as investors increasingly expect higher inflation, and after renewed attacks on Iran raised concerns for energy prices. Ahead of trading, FTSE futures pointed to a drop of about 0.6%. The index hit a new record intraday high of 10,951 on Wednesday morning before easing to 10,864 later. The update came after analysts cited an “on-hold” Fed decision and limited detail from Chair Kevin Warsh. Oil-price pressure followed US-Israeli actions around Iran, while bond yields rose after the meeting. Despite the negative tone, results from companies including BAE Systems, Lloyds, London Stock Exchange Group, Shell and Rolls-Royce may temper declines. Rolls-Royce raised guidance again, expecting £4.7bn–£4.9bn underlying operating profit.