FTSE 100 watch: Footsie subdued as investors brace themselves for Fed decision

FTSE 100 watch: Footsie subdued as investors brace themselves for Fed decision

Britain’s blue-chip index has been trading marginally in the red in today’s session, with investors staying on the sidelines ahead of the Federal Reserve’s rate decision, due to be announced later today, after the UK market closes. In stock news, Smiths Group (LON:SMIN) has plunged to the bottom of the FTSE 100 leaderboard after peer Rotork warned on this year’s revenues.

As of 12:01 BST, the Footsie had shed 11.27 points to stand 0.18 percent lower at 6,217.94. The Fed’s two-day policy meeting is weighing on sentiment despite expectations that the US central bank will keep rates low.
“The press conference after the interest rate decision will be carefully watched, and even if rates are kept on hold, traders are preparing themselves for hawkish language,” David Madden, market analyst at IG, said in a note, adding that investors were “bracing themselves for a word of warning about an interest rate rise down the line”.

In individual stock news, Smiths Group’s share price has slumped 4.05 percent to 1,083.33p. Reuters quoted traders as attributing the fall to Rotork’s comments that it expected a decline in full-year revenue and operating profit after projects were deferred and cancelled and trading in August was ‘particularly weak’.
“Engineers, especially those operating in the oil and gas sector, have a grim outlook given weaker oil prices,” Jawaid Afsar, a trader at Securequity, told the newswire. “The challenging environment has been forcing oil companies to defer or cancel orders, hitting revenues of engineering firms.”
Glasgow-based engineer The Weir Group (LON:WEIR) has been the other prominent blue-chip faller, with the share price pressured further by the group’s pending demotion from the benchmark index. Weir’s share price is 3.95 percent worse off at 1,266.00p.
**The FTSE 100 was 0.22 percent down at 6,215.52 points as of 12:07 BST on September 17, 2015.**
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By Alice Young
Alice joined the Invezz team after motherhood convinced her to make a career change from actuary-ing. She brings a forensic eye for detail developed through crunching numbers on underwriting satellite insurance and the like.
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