FTSE 100 watch: Footsie subdued as investors digest central bank moves

The UK benchmark index has slipped into the red this Thursday, with investors digesting the outcomes of the Federal Reserve and the Bank of England’s policy meetings. In individual movers, AstraZeneca (LON:AZN) is outperforming the FTSE 100 after posting upbeat results from late-stage trials.

FTSE dips lower

As of 12:50 GMT, the Footsie had lost 10.80 points to stand 0.16 percent lower at 6,755.14. Sentiment around the world has been subdued today after the Fed moved to raise interest rates last night and signalled ‘some further gradual’ rate hikes next year.

“It appears that risky asset markets wanted a stronger ‘put’ from the Fed given the ongoing recession obsession taking over the market sentiment,” said Salman Ahmed, global investment strategist at Lombard Odier Investment Managers, as quoted by Reuters.

At home, the BoE left interest rates unchanged, while warning over the lack of clarity regarding Brexit.

“Having updated forecasts last month and still finding themselves having to deal with the significant uncertainties of Brexit, the Bank of England’s non-committal tone today is no surprise,” said Tim Graf, head of macro strategy for Europe, Middle East and Africa at State Street Global Markets, as quoted by Proactive Investors.

Individual movers

In individual stock news, shares in AstraZeneca have been in demand after the blue-chip drugmaker posted upbeat results from late-stage trials for its oncology treatment Lynparza and kidney disease drug roxadustat.

The pharmco’s shares are currently changing hands 1.91 percent higher at 6,082.00p. GlaxoSmithKline (LON:GSK) meanwhile has continued its rally, trading 1.42 percent higher at 1,524.36p, in the wake of its joint venture deal with US pharma giant Pfizer.