BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.K. stocks edged lower in cautious trade on Wednesday after the Organization for Economic Cooperation and Development (OECD) forecast the global economy would contract 6.0 percent this year before bouncing back with 5.2 percent growth in 2021.
As the threat of a second wave of contagion keeps uncertainty high, Britain is expected to see the worst downturn among the countries covered by the OECD.
Investors also awaited the outcome of the U.S. Federal Reserve's latest policy meeting for directional cues.
The benchmark FTSE 100 dropped 23 points, or 0.36 percent, to 6,313 after tumbling 2.1 percent in the previous session.
HSBC Holdings declined 1.7 percent after U.S. Secretary of State Michael Pompeo criticized the bank for backing China's move to impose national security legislation in Hong Kong.
Paragon Banking Group dropped 1.4 percent after its first-half profit before tax fell 20.7 percent to 57.1 million pounds from last year's 72.0 million pounds.
Shaftesbury slumped 4.6 percent as the real estate investment trust reported a loss before tax of 287.6 million pounds for the 6 months ended 31 March 2020 compared to profit of 38.7 million pounds, prior year.
Copyright RTT News/dpa-AFX