Stocks steady as traders wait for Fed’s call

Movement in the pound and the FTSE 100 was muted as markets held their breath ahead of a US Federal Reserve meeting later in the day.

In a widely-expected move, the fed announced yesterday evening that it will raise interest rates by 0.25 per cent, the third increase this year, with more predicted for 2019.

“European markets have been lacklustre today as traders are in wait-and-see mode. Playing into the mix is also the continued trade uncertainty that is hanging over the markets,” said CMC Markets analyst David Madden.

London’s blue-chip index inched up only slightly as traders awaited the decision, closing 3.93 points higher at 7,511.49.

The pound was flat against the dollar at $1.317 as the greenback rose higher in anticipation of the Fed’s announcement, but it traded 0.1 per cent higher versus the euro at €1.209. This came after the European Central Bank (ECB) published concerns that a trade war between the US and China could heavily impact the exportorientated eurozone.

In UK stocks, shares in Sky were almost flat after Monday’s rise, but managed to notch up a 4.5p increase to 1,730.5p when Rupert Murdoch’s 21st Century Fox confirmed it will sell its 39 per cent stake in the broadcaster to Comcast.

Fox said that, following Comcast’s victory in a £30 billion bidding war over the British broadcaster, it would either accept the US cable giant’s offer or sell its stake at the offer price of £17.28.

Outside the blue-chip index, AA dipped lower as car breakdowns hit a 15-year high, impacting its profits. Shares in the motoring association were 16.35p lower at 103.15p.