FTSE 100 watch: Footsie little changed ahead of Fed rate decision

Next extends gains after previous session’s rise

FTSE 100 watch: Footsie little changed ahead of Fed rate decision

The UK benchmark index has been little changed in London in today’s session, with investors staying on the sidelines ahead of the outcome of the Federal Reserve meeting in the US later today. Next (LON:NXT) meanwhile has been steady, building on the previous session’s gains.

FTSE 100 little changed

As of 12:41 BST, the Footsie stood at 7,507.56 points, flat in percentage terms. Investors have been cautious in today’s session, awaiting the Fed rate decision scheduled to be announced later today, after the London market closes.

“We expect the Fed to hike the target range to 2.00-2.25%, but not send any new policy signals,” Danske Bank said, as quoted by Proactive Investors. “With respect to Fed projections, it will most likely still signal another hike in December (and probably that more FOMC members support this) and three hikes next year.”

Chris Beauchamp, market analyst at IG, commented that the FTSE 100 was again testing the area of resistance around the 7,500-point level, as it did at the end of last month.

“A close above 7,500 could open the way to 7,644, the late August high,” the analyst pointed out, adding that “below 7,490, the chances of a leg lower towards the September lows” increase.

Individual movers

Next is currently trading 0.11 percent higher at 5,524.00p, marginally outperforming the FTSE 100, as investors and analysts continued to digest the group’s interim results.

Randgold Resources (LON:RRS) meanwhile has been one of today’s most prominent Footsie fallers, in the wake of its tie-up deal with Barrick Gold earlier in the week. Randgold’s share price is currently 1.87 percent worse off at 5,524.00p.

The FTSE 100 was 0.11 percent lower at 7,499.36 points as of 12:53 BST on Wednesday, 26 September 2018.

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