FTSE 100 watch: Footsie little changed as investors await Fed

on Dec 13, 2017

The UK benchmark index has climbed marginally higher in today’s session, staying little changed amid investor caution ahead of the outcome of the Federal Reserve policy meeting later today. In individual movers, Berkeley (LON:BKG) is underperforming the FTSE 100 as Jefferies abandoned its bullish stance on the company.

Footsie little changed

As of 12:28 GMT, the benchmark index had added 5.69 points to stand 0.08 percent higher at 7,506.10. Investors have been staying on the sidelines today, ahead of the Fed policy statement later today, with the US central bank largely expected to hike interest rates at the conclusion of its last policy meeting for the current year. Reuters notes that the rate hike expectations have boosted financials, while dragging on housebuilders and consumer stocks.

“The market does seem to have rotated a little bit into HSBC and financials,” Colin McLean, CEO of SVM Asset Management in Edinburgh, told the newswire. “It’s a little bit of an inflation trade coming back on with a return to the banks.” HSBC Holdings’ (LON:HSBA) shares are currently 1.68 percent up at 769.80p.

Berkeley underperforms

Berkeley has slipped into the red alongside other London-listed housebuilders, further pressured by Jefferies’ move to trim its holding on the company from ‘buy’ to ‘hold’.

“We are very supportive of the group’s business model. There is, in our view, an acute shortage of housing in London, however, we believe the share price now reflects much of that supply tension,” the analysts explained, as quoted by WebFG News. Berkeley’s share price is 0.49 percent down at 4,080.00p.

The FTSE 100 was 0.04 percent up at 7,503.29 points as of 12:42 GMT on Wednesday, 13 December 2017.