FTSE 100 retreats after Fed plays down rate cut hopes

London's main index slipped on Wednesday as investors shied away from equities after the U.S. Federal Reserve tapered expectations of interest rate cuts, while Bonmarche tumbled to an all-time low after accepting a discounted buyout offer.

The FTSE 100 and the FTSE 250 were both down 0.1% by 0711 GMT.

Losses on the main index were spread across the board, with only oil stocks in the black in early dealings.

Women's fashion retailer Bonmarche tanked 26% after it backed a buyout offer from businessman Philip Day's firm Spectre Holdings, now calling it "fair and reasonable" after the company posted poor trading results in the first quarter.

The 11.445 pence per share offer was a 28% discount to the stock's close on Tuesday.