The FTSE 100 finished just short of a fresh record high despite rising amid strong sessions from utilities firms.
It came as Chancellor Rachel Reeves set out ambitions to kickstart economic growth with planning reform, as the Government laid out support for Heathrow expansion.
The announcement had a largely subdued response in the City, as banking firms and retailers witnessed broad positive trading.
Monday’s slump and Tuesday’s recovery have given way to indecisive trading today as investors await the Fed decision and earnings
London’s top index finished 23.94 points, or 0.28%, higher to end the day at 8,557.81.
Elsewhere in Europe, the other key indexes were mixed but still hovered around record levels, with Germany’s Dax lifting further amid a boost from Daimler Truck shares.
The Cac 40 ended 0.32% lower for the day and the Dax index was up 0.9%.
Across the Atlantic, trading on the main US markets was mixed ahead of the latest Federal Reserve interest rate decision on Wednesday evening.
Chris Beauchamp, chief market analyst at IG, said: “Monday’s slump and Tuesday’s recovery have given way to indecisive trading today as investors await the Fed decision and earnings.
“Tonight’s rate decision is all but guaranteed to be a hold, but the press conference will likely prove to be one of the more interesting, if only to watch Jerome Powell don his diplomatic garb once again and avoid being drawn on how the new administration’s possible tariffs will affect Fed policy.”
Meanwhile, sterling had another subdued session but clawed back slightly against the dollar, after the US greenback’s resurgence earlier this week.
The pound was up 0.04% at 1.244 US dollars and was also up 0.04% at 1.193 euros when London’s markets closed.
In company news, water firm operators Pennon and United Utilities both climbed in value on Wednesday as they said they will raise dividends to shareholders amid plans to increase customer bills.
Pennon, which owns South West Water, said it will increase dividends in line with inflation and will also tap investors for £490 million via a sale of new shares.
Shares in the company were up 7.5% at 554p.
United Utilities, which supplies water in the North West, finished 2% higher at 999.4p as it said its rise in bills would raise £13 billion to invest in its infrastructure.
Lloyds Banking Group shares were in the green after the firm said it plans to shut 136 more high street branches as it pushes forward with its transformation programme.
It will close 61 Lloyds, 61 Halifax and 14 Bank of Scotland branches between May this year and March 2026, the London listed group said.
Shares in the business finished up 1.5% at 62.52p on Wednesday.
WH Smith shares lifted to their highest for two months after the retail group reported a 3% rise in group sales for the past 21 weeks. Shares moved up 6.9% as a result.
The price of oil was slightly softer during the session, in a possible slight correction after the recent jump in energy prices.
A barrel of Brent crude oil was down by 0.15% to 77.37 dollars (£62.19) as markets were closing in London.
The biggest risers on the FTSE 100 were JD Sports, up 3.82p to 86.3p, Admiral Group, up 97p to 2,754p, Beazley, up 28p to 840p, Fresnillo, up 18p to 675p, and IAG, up 8p to 330.7p.
The biggest fallers on the FTSE 100 were BAE Systems, down 55.5p to 1,195.5p, Diageo, down 68.5p to 2,426.5p, Glencore, down 9.45p to 345.5p, St James’s Place, down 18p to 929p, and LondonMetric Property, down 2.6p to 183.1p.
