Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a654732

FTSE investors press pause ahead of Fed meeting

'Buy' recommendation lifts WPP, but miners weigh on FTSE.

 
FTSE investors press pause ahead of Fed meeting

Britain’s FTSE 100, which has rallied strongly so far this year, started Wednesday trading flat as investors paused for thought ahead of the US Federal Reserve’s policy-setting meeting and a string of important economic data.

Amid a growing debate about whether markets can continue pushing higher or are due a correction, the UK benchmark index stood firm at 6,340, unchanged after yesterday’s rally. European markets were similarly little changed – unmoved by a report showing the Spanish economy shrunk for a sixth straight quarter – despite strength on Asian and US markets, with the Dow Jones Industrial Average scaling a five-year high on strong corporate earnings.

In currency markets, the British pound was down yet again, off 0.1% against the dollar to $1.5744 and down 0.2% against the euro to €1.1661.

Miners hold FTSE back

Miners held the FTSE back, reversing yesterday’s gains, with Petrofac (PFC.L) down by 7.5% to 1,696p and Antofagasta (ANTO.L) lower by 4% at 1,218p.

Imperial Tobacco (IMT.L) was trading lower after reporting net revenues of just 2% in the last three months of 2012, with volumes down 1%. ‘Market trends have worsened in a number of key markets including in the EU and Russia,’ the group reported.

Analysts at Nomura listed the reasons why the tobacco blue chip could be in for a ‘de-rating’, including: ‘top-line focus falling short, margin pressures owing to cost of increased investment, western European exposure where conditions are worsening.’

WPP & UU compete for top spot

At the other end, WPP (WPP.L) was among the top risers, with shares up 1.1% to 748p after Jefferies analysts raised the shares to a ‘buy’ after an ‘analysis of WPP's largest clients and their 2013 ad budgets’.

Water company United Utilities (UU.L) was 1% higher to 748p after reporting an in-line interim management statement. Angelos Anastasiou of Seymour Pierce said the statement was as expected and ‘UU remains the least expensive of the Waters’.

Computer chip designer Imagination Technologies (IMG.L) was also having a good day, up 7.7% to 475p as Morgan Stanley raised the shares from ‘equal-weight’ to ‘overweight’

Investors are now looking ahead to the meeting of the Federal Reserve’s FOMC, which decides on US monetary policy, as well as data on US economic growth in the last three months of 2012.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire guide to investment trusts

In association with Aberdeen Asset Management

Fund managers from Standard Life Investments quizzed on investment trusts


What can SLI bring to the table for those who want to put their money into investment trusts?

More about this:

Look up the shares

  • WPP PLC (WPP.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • United Utilities Group PLC (UU.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Petrofac Ltd (PFC.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Antofagasta PLC (ANTO.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Imagination Technologies Group PLC (IMG.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Imperial Tobacco Group PLC (IMT.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

Where do retail bonds fit in my portfolio?

by Jennifer Hill on Jul 30, 2014 at 07:00

Sorry, this link is not
quite ready yet