DS Smith surges on deal discussions with International Paper
Diploma jumps on Peerless Aerospace Fastener acquisition
TI Fluid Systems plunges on discounted share placement
Both FTSE 100 FTSE 250 down 0.3

March 27 Reuters Britain39;s FTSE 100 inched lower on Wednesday, hurt by declines in energy and bank stocks, but the losses were limited by a jump in shares of paper and packaging firm DS Smith and specialised products and service distributor Diploma on dealrelated news.

Both the exportheavy FTSE 100 and the domestically oriented FTSE 250 was down 0.3 by 0933 GMT.

The energy sector slid 1.2 as oil prices fell for a second day after a report showed U.S. crude stockpiles have increased.

Bank stocks also dropped 0.9.

The FTSE 100 index touched a oneyear high last week following dovish signals from major central banks, including the Bank of England BoE, but the rally has lost some steam this week.

It39;s just exhaustion. It39;s just that the rally needs time to regroup. The driver is particularly the long weekend looming and the end of the quarter. It needs to pause, a refresh essentially, said Chris Beauchamp, chief market analyst at IG Group.

Market participants remained focussed on a key reading of the U.S. personal consumption expenditure price index PCE, the Federal Reserve39;s preferred inflation gauge, due on Friday, when most global markets will be shut for the Good Friday holiday.

To an extent, people are waiting to see what comes through in terms of…