FTSE’s small gains ahead of Fed de­ci­sion

Western Daily Press - - Business -

THE FTSE 100 made mea­gre gains yes­ter­day as mar­kets across the globe found trad­ing slug­gish ahead of the US Fed­eral Re­serve meet­ing.

Lon­don’s top flight in­dex closed the day up 23.4 points, or 0.33 per cent, at 7,140.68.

The rise came as its Euro­pean peers stum­bled in an­tic­i­pa­tion of the US Fed­eral Re­serve pol­icy meet­ing, where it is ex­pected that in­ter­est rates will be held steady.

David Mad­den, an­a­lyst at CMC Mar­kets, added that a set of gloomy growth fore­casts was weigh­ing on sen­ti­ment.

“Stock mar­kets are mixed as the bullish sen­ti­ment in the wake of the US mid-terms fades,” he said. “The Euro­pean Com­mis­sion pre­dicts that growth in the eu­ro­zone will cool in the next two years.

“The or­gan­i­sa­tion also pre­dicts that the UK econ­omy will see the small­est growth in all of the EU coun­tries in the next two years.

“Un­cer­tainty over Brexit was cited as rea­son for the down­beat fore­cast, but the Bri­tish econ­omy has out­per­formed many eu­ro­zone na­tions in re­cent years, so a cool­ing of growth isn’t a sur­prise.”

In stocks, Burberry shares were up af­ter the lux­ury fash­ion brand said its trans­for­ma­tion plan was on track to de­liver cost sav­ings of £100 mil­lion this year, as it hailed an “ex­cep­tional” re­cep­tion for its new head de­signer.

.33 Per­cent­age rise in the FTSE 100, which closed last night at 7,140.68

Cu­mu­la­tive cost sav­ings reached £80 mil­lion, with the group con­firm­ing a goal for the full year of £100 mil­lion.

Ad­justed op­er­at­ing profit fell by four per cent on a re­ported ba­sis but was up eight per cent at con­stant cur­rency.

Com­pa­ra­ble store sales rose three per cent in the first half, as new creative di­rec­tor Ric­cardo Tisci took the helm. Shares closed up 48.5p at 1,864.5p.

Sainsbury’s was also in the as­cen­dancy, de­spite adding to fears over lack­lus­tre con­sumer spend­ing in the run up to Christ­mas.

Its shares closed up 4.9p at 324p. The pound, mean­while, had a rel­a­tively un­event­ful day, clos­ing down slightly ver­sus the US dol­lar at 1.311 and flat against the euro at 1.149.

In Europe, Ger­many’s DAX was down 0.45 per cent while France’s CAC was 0.13 per cent lower.

A bar­rel of Brent crude was trad­ing at 71.2 US dol­lars, down one per cent.

The big­gest ris­ers on the FTSE 100 were Coca Cola HBC up 116p at 2,376p, As­trazeneca up 236p at 6,093p, Marks and Spencer up 11.4p at 312.3p and Mi­cro Fo­cus up 38.5p at 1,294p. The big­gest fall­ers were BP down 15.3p at 529p, Paddy Power Bet­fair down 155p at 6,675p, Sage Group down 11.4p at 551.4p and WPP down 16.8p at 873.4p.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.