FTSE’s small gains ahead of Fed decision
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.