The FTSE 100 retreated on Wednesday after a two-day rally that lifted it to two-week highs, tracking broader weakness across European markets. AB Foods slumped over 12% as disappointing Primark sales and ongoing sugar division weakness rattled investors, with analysts citing fragile like-for-like growth and the absence of forward guidance, a concern given Primark’s outsized role in profits. Vistry Group shed nearly 5% despite reporting results in line with forecasts and progress in reducing debt, warning that housing demand remains vulnerable to economic headwinds. On the political front, UK Labour leader Keir Starmer moved to tighten oversight of economic policy, while Britain resumed trade negotiations with China. Globally, a weaker-than-expected US producer price index report bolstered expectations for Federal Reserve rate cuts, with markets fully pricing a reduction next week and leaving room for further easing later this year.