Stock market slips ahead of Fed decision

Market report Perry Gourley

The FTSE 100 index dipped as investors awaited the Fed’s decision on interest rates.

The index of leading shares dropped 19.38 points to close at 6,949.19 and Connor Campbell of Spreadex said the tone of trading globally had been “fairly negative” throughout the afternoon with the major indices all slipping as investors awaited the results of the month’s much-anticipated Federal Reserve meeting.

On the currency markets, the pound pushed 0.4 per cent higher against the US dollar to $1.270, while sterling was 0.2 per cent up versus the euro at €1.192. The UK currency was making headway against the greenback after the US dollar slipped ahead of the interest rate decision.

Dixons Carphone topped the biggest fallers despite booking a 19 per cent jump in half-year profits.

The group said that while it had yet to see a knock to shopper confidence from the Brexit vote, it was planning for a more unsettled 2017 as EU exit negotiations loom large and amid cost pressures from the sharply weaker pound.

Shares were down more than 6 per cent, or 24.1p to 342.6p, as the firm revealed that it buys around 90 per cent of its products in sterling, but said it aims to offset any increase in the costs.

Pub group Punch Taverns saw its shares jump 37.7 per cent to 177p as it became embroiled in a £400 million takeover tussle after receiving approaches from its co-founder Alan Mcintosh and Heineken. Private equity group Patron Capital has proposed a 174p-ashare offer, while Emerald Investment Partners has put forward a potential bid of 185p a share. The online fashion retailer upgraded its guidance on sales performance and announced the acquisition of clothing business Prettylittlething. The electrical goods retailer warned investors that it is “planning for the possibility of more uncertain times ahead” following the Brexit vote.