The UK benchmark index has been little changed in today’s session, amid investor caution ahead of central bank meetings later in the week. GVC Holdings (LON:GVC) has rallied to the top of the FTSE 100 leaderboard after announcing a joint venture deal with MGM Resorts.
FTSE 100 little changed
As of 12:31 BST, the Footsie had added 5.51 points to stand 0.07 percent higher at 7,706.82. Investors have been staying on the sidelines ahead of a two-day Federal Reserve meeting starting tomorrow, while at home, the Bank of England (BoE) is due to announce its rate decision on Thursday. Proactive Investors quoted ING Research as saying that the pound was “unlikely to find much love” from a widely expected ‘dovish’ BoE interest rate hike of 25 basis points (bps).
“While the UK rates market is underestimating the potential BoE rate hike path under a smooth Brexit scenario, we doubt investors will be broadly willing to bring forward their BoE policy tightening expectations given the obvious near-term political headwinds,” the analysts pointed out.
GVC share price surges
In individual stock news, GVC Holdings has jumped after announcing that it was establishing a 50/50 joint venture with MGM Resorts International to create a sports betting and online gaming platform in the US.
“A 50/50 JV would enable GVC to benefit from a much larger profit pool in future, and any initial operating losses would likely be compensated for by future market share gains,” analysts at Berenberg said in a note, as quoted by Reuters. GVC’s share price is currently 4.38 percent better off at 1,143.00p.
The FTSE 100 was 0.06 percent up at 7,705.58 points as of 12:45 BST on Monday, 30 July 2018.