FTSE muted ahead of Fed rates decision

The FTSE 100 closed lower as European markets remained muted ahead of the Federal Reserve rates announcement in the US.

London’s premier index ended the day 39.5 points in the red at 7,403.54.

The Fed is expected to keep rates on hold but also indicate a less hawkish outlook. This has weakened the dollar and sent the pound higher, while putting pressure on London’s stock.

A decline in Consumer Price Inflation also failed to deter pound traders, as the rate met the Bank of England’s 2 per cent in target in May.

Sterling rose 0.57 per cent to $1.262 versus the dollar and 0.42 per cent to €1.126 on the euro.

David Madden, market analyst at CMC Markets UK, said: “Equity markets in Europe are mixed as traders look forward to the Federal Reserve meeting.”

In stocks, Bank of Scotland owner Lloyds saw shares rise on the day its executives faced questioning from MPS over chief executive Antonio Horta-osorio’s controversial pay and pension package. The lender closed up 1.1p at 59.2p.

Goals Soccer Centres has rebuffed efforts from Sports Direct’s Mike Ashley to hire an investigator of his choice to tackle its recent accounting crisis, saying it is in continued talks with HMRC over the estimated £12 million blunder. Shares in the East Kilbride-based five-aside football business remain suspended after it discovered a series of accounting errors in its accounts in March.

Premier Inn owner Whitbread saw shares lift 26p to 4,625p despite posting a 4.6 per cent decline in UK sales as Brexit uncertainty continues to take its toll on business travel.