Footsie gains after hints of ‘doveish’ Fed

The FTSE 100 tracked European stocks higher on the hope of US rate cuts as sterling suffered ahead of Boris Johnson’s talks with German premier Angela Merkel.

London’s blue-chip index closed up 78.97 at 7,203.97, buoyed by traders buying up stocks ahead of the announcement of details from the Federal Reserve’s latest meeting. Investors are hoping that dovish language in a fresh report could suggest further cuts by the central bank.

Connor Campbell, financial analyst at Spreadex, said: “Ahead of this evening’s potentially crucial Fed meeting minutes, investors barrelled back into the Western indices, increasingly confident that central banks will step in to try and avert a recession.”

Sterling lost its gains from Tuesday’s positive comments by Angela Merkel, as the UK’S relationship with the EU remains uncertain ahead of further Brexit talks with the British PM.

The pound was 0.21 per cent down at $1.214 versus the dollar and fell the same against the euro to €1.094.

In stocks, Onesavings Bank saw shares dip despite unveiling loan growth as it prepares to integrate Charter Court into its business after a £1.6 billion merger. Shares closed 17.6p lower at 337.8p.

Easyhotel shares closed at 96p after bidders Ivanhoe Cambridge and property fund manager ICAMAP said they are set to take over the business despite objections from billionaire founder Sir Stelios Haji-iannou, who accused ICAMAP of trying to “steal” Easyhotel from under investors’ noses in his latest attempt to block a takeover of the business.