Traders wary ahead of Fed rates update

The markets were mixed as traders remained on tenterhooks ahead of the pivotal update from the Federal Reserve.

The FTSE 100 edged higher while other key markets dipped as the City became cautious over the possibility of rate cuts.

London’s top flight closed 24.52 points higher at 7,330.78 at the end of trading yesterday.

Connor Campbell, financial analyst at Spreadex, said: “As is typical for a Fed Wednesday, the markets were largely quiet as the session went on, patiently waiting for news on the central bank’s next steps.”

The Dow Jones slipped as traders were cautious ahead of what was expected to be a third rate cut in 2019.

In Europe, the key markets were mixed, with the French markets strengthened by betterthan-expected GDP figures, while a poor outing by Deutsche Bank hit the Dax.

The German Dax decreased by 0.23% while the French Cac moved 0.45% higher.

Sterling was steely-eyed in the face of December’s general election, moving marginally higher against the dollar.

The pound was up 0.08% versus the US dollar at 1.287, and flat against the euro at 1.157.

The price of oil sank lower in the wake of the latest Energy Information Administration report but recovered some of its losses.

The price of a barrel of Brent crude oil decreased by 0.94% to 61.02 US dollars.

The biggest risers on the FTSE 100 were Reckitt Benckiser, Intertek Group, Standard Chartered, and Astrazeneca.

The biggest fallers on the index were NMC Health, Whitbread, Antofagasta, and Kingfisher.