Sector movers: Stocks slip with all eyes on the Federal Reserve

Automobiles and Tobacco were pacing losses on Wednesday amid a down market for the FTSE 350, even as many investors sat on their hands ahead of the US central bank's policy announcement.

"More than usual, it feels like everyone will reassess their positions once the Fed decision is known, but hints today from the Fed’s ‘Whisperer’ suggest that, once again, the world’s most important central bank will take a hawkish line," said IG chief market analyst Chris Beauchamp.

Against that Backdrop, shares of Aston Martin skidded lower, to within a hair's breadth of their all-time lows and on heavy trading volumes.

Tobacco was near the bottom of the pile alongside, after analysts at Goldman Sachs downgraded British American Tobacco shares to 'neutral'.

Industrial Metals and Mining also in the red, giving back some of the prior session's gains despite renewed rumours - unconfirmed thus far - in China that Beijing might be plotting easing its Covid-19 restrictions.

The US Federal Open Market Committee was scheduled to announce its decision at 1900 GMT, followed by Fed President Jerome Powell's presser half an hour later.

Just how hawkish would Powell be as regards the Fed's next meeting in December and peering out into 2023.

Among the myriad factors that might possibly influence his thinking most was just how quickly - or not - consumer price inflation was expected to slip lower over the next year, especially given apparent ongoing strength in the jobs market heading into the final - and traditionally supportive - final quarter of the year.

And as Beauchamp also noted, "for sterling watchers the problem of what to do next is compounded by the fact that Andrew Bailey and co will follow hard on the heels of Jerome Powell and his team.

"Now that the crisis at the heart of government has subsided, the focus returns to the UK economy, and here there is probably little that the BoE can say to chivvy the pound higher against the dollar from here. Even the adventurous types that bought the pound at its September lows might shrink from chasing the rally any higher from here."

Top performing sectors so far today

Industrial Transportation 3,447.12 +2.02%

Investment Banking and Brokerage Services 12,169.86 +1.06%

Pharmaceuticals & Biotechnology 19,842.45 +1.00%

Industrial Engineering 13,872.30 +0.58%

Non-life Insurance 3,082.62 +0.56%

Bottom performing sectors so far today

Automobiles & Parts 1,125.84 -8.86%

Tobacco 35,589.64 -4.83%

Industrial Metals & Mining 6,735.42 -1.85%

Chemicals 11,218.24 -1.77%

Construction & Materials 6,404.85 -1.35%