FTSE rises as traders await interest rate decision
Source - SMW
The FTSE 100 was up 0.3% at 7,508 ahead of the Bank of England's decision on whether interest rates should be raised for the first time in a decade. Analysts said they are expecting rates to rise on the back of robust UK economic data and rising inflation.
Among the weakest performers were miners, with Randgold Resources (RRS) declining 5% to £70.95 on weaker production in the third quarter compared to the third quarter in 2016.
Fresnillo (FRES) and Glencore (GLEN) followed their peer lower, down 1.7% and 0.7%, respectively.
Brent crude oil slipped 0.4% to $60.25 per barrel. Gold was stable at $1,274 per ounce and copper retreated 0.1% to $3.13 per pound.
Overnight, the Dow Jones and S&P 500 gained positive momentum after the Federal Reserve said US economic activity was strong, prompting optimism that interest rates will be hiked in December.
President Donald Trump's tax bill proposal is expected later, which also boosted investor sentiment.
The Nasdaq closed 0.2% lower at 6,716 as shares in Apple retreated ahead of its quarterly results on Thursday.
MID AND LARGE CAP RISERS AND FALLERS
Kitchen seller Howden Joinery (HWDN) maintained full year guidance despite a difficult consumer backdrop and other big retailers suffering profit warnings this year. The company revealed a strong trading update and focused on driving volumes between 12 June and 28 October, causing the shares to rally 7% to 441.3p.
UK supermarket Morrisons (MRW) struggled as 2.5% like-for-like growth, excluding fuel, was slower than the strong pace set at the start of 2017. Shares in the grocer ticked 0.5% lower to 222.9p.
Unilever (ULVR), Softcat (SCT), Dunelm (DNLM) and Ashmore (ASHM) were weaker as they went ex-dividend.
Sugar seller Tate & Lyle (TATE) revealed a 13% jump in pre-tax profit to £169m, thanks to volume growth in its speciality food ingredients and bulk ingredients divisions and currency movements. Full year profits are expected to beat previous expectations, driven by the good performance in the first half, pushing the stock 1.6% higher to 675p.
Acacia Mining (ACA) remained in the doldrums, down 2.7% to 177p, following the resignation of its chief executive and chief financial officer. Acacia suffered a difficult year after the Tanzanian government banned the exports of unprocessed ore.
Broadband provider BT (BT.A) said sales fell by 1% to £5,949m in the six months to 30 September and underlying revenue was down 1.5%. The full year outlook was maintained, although this didn't stop the shares dipping 1.4% to 256.7p.
Gambling firm GVC (GVC) sold its Turkish operations for €150m to increase its focus on regulated markets, but this failed to spark the share price at 949p.
RSA Insurance (RSA) fell short of third quarter growth as hurricane losses in the US and Caribbean dragged on performance, The UK also struggled with hurricane costs, but underwriting for Scandinavia, Canada, Ireland and the Middle East were ahead. Investors focused on the negatives as the stock retreated 1.4% to 624p.
FTSE 250 member Intu Properties (INTU) remained condiment of delivering further growth in like-for-like net rental income next year, causing the shares to climb 4.3% to 222.3p.
SMALL CAP RISERS AND FALLERS
Playtech (PTEC) warned that its full year performance will be approximately 5% below market expectations due to the impact of specific Asian markets and poor Sun Bingo performance. Shares in the gambling software developer plummeted 22% to 770p.
AIM listed Elektron Technology (EKT) sparked 14% higher to 19.5p on strong third quarter trading, with sales increasing 34% compared to the same period last year.