Advertisement
UK markets close in 1 hour 21 minutes
  • FTSE 100

    7,973.03
    +41.05 (+0.52%)
     
  • FTSE 250

    19,893.10
    +82.44 (+0.42%)
     
  • AIM

    743.55
    +1.44 (+0.19%)
     
  • GBP/EUR

    1.1695
    +0.0026 (+0.22%)
     
  • GBP/USD

    1.2629
    -0.0009 (-0.07%)
     
  • Bitcoin GBP

    56,476.58
    +1,224.07 (+2.22%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,251.55
    +3.06 (+0.06%)
     
  • DOW

    39,731.34
    -28.74 (-0.07%)
     
  • CRUDE OIL

    82.63
    +1.28 (+1.57%)
     
  • GOLD FUTURES

    2,235.40
    +22.70 (+1.03%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,506.75
    +29.66 (+0.16%)
     
  • CAC 40

    8,219.10
    +14.29 (+0.17%)
     

Britain's FTSE edges higher, bound by Fed decision

* FTSE 100 (FTSE: ^FTSE - news) marginally higher

* Slim chance of no taper gives FTSE potential upside

* Smith Group, United Utilities (LSE: UU.L - news) among top gainers

* Barclays (LSE: BARC.L - news) goes ex-rights, weighs on index

By Alistair Smout

LONDON, Sept 18 (Reuters) - Britain's top share index edged higher on Wednesday, recouping some of the previous session's losses, but with gains seen capped until after the U.S. Federal Reserve's policy meeting.

The Fed is widely expected to reduce its $85 billion in monthly asset purchases - Reuters polls suggest by $10 billion - after UK markets close on Wednesday, and traders were keen to position themselves

ADVERTISEMENT

"The market is priced for $10 billion... but I think there's more chance that they taper less than expected or not at all, given recent mixed data, rather than deliver, say, a $15 billion taper, and that continued stimulus would boost the FTSE," Mike van Dulken, head of research at Accendo Market, said.

"The Fed has been focussed on taking the froth out of the market, however, so they may use the wording to balance things out."

Smiths Group (LSE: SMIN.L - news) was up 3.1 percent, the top FTSE riser, after annual results revealed a slight rise in profits.

United Utilities was also a strong gainer, up 0.9 percent, with British media reporting that the stock was subject to take over chatter.

Barclays was among the top traded stocks, with volume of 34.1 percent of its 90 day average, compared with 12.9 on the broader index. The share went ex-rights on Wednesday.

The bank traded at 280 pence, representing a 1 percent rise based on its theoretical ex-rights price (TERP) of 276.3 pence, but down 6 percent from its previous close at 299 pence.

The technical drop in Barclays' price took 10.6 points off the FTSE 100, causing it to trade flat in percent terms at 6,571.06, a 0.89 point rise.

The index had dropped 0.8 percent in the previous session, off of 1-1/2 month highs.

Ioan Smith, director at KCG, said that the next resistance for the index was at 6,700, around the previous July high, while support was seen for the index just above 6,350, at the 200 day moving average.

Ex-divs trimmed 0.36 points of off the FTSE 100 on Wednesday, as Antofagasta (Other OTC: ANFGF - news) , Melrose and Petrofac all traded without entitlement to their latest dividend payout.

(Editing by Jeremy Gaunt)