London close: Footsie edges higher ahead of US Fed decision
Continuing weakness in the pound ahead of the US central bank's policy announcement later in the day boosted London's top flight index on Wednesday.
The FTSE 100 was 0.30% firmer at 7,543.20, while the pound was up 0.11% against the euro at 1.1365 and off by 0.12% versus the US dollar at 1.3607, respectively.
Also helping to boost investor sentiment a tad was data showing that construction activity in Britain bounced back a little last month, after weakness in the first quarter undermined expectations of the Bank of England's monetary policy plans.
IHS Markit's construction purchasing managers' index showed a rebound to 52.5 in April from the dreadful 46.0 a month earlier that capped off a 3.3% quarter-on-quarter fall in output in the first quarter as a whole.
With a PMI reading above 50 indicating growth, April's PMI was the highest in five months and beat the average economist estimate of 50.5 but was only slightly ahead of its 12-month average of 52.1 and short of the 53 level that historically equates to actual output growth.
Howard Archer, chief economic advisor to the EY Item Club, cautioned that despite the pick-up, construction activity was still far from racing ahead in April and a stronger rebound could realistically have been hoped for given the extent of March’s weakness.
"Consequently, the April purchasing managers' survey did little to dilute underlying concerns over the softness of the construction sector."
Still to come on Wednesday, the Federal Reserve's latest policy announcement is at 1900 BST. With no change to policy expected, investors will eye the accompanying statement for clues on more rate hikes this year.
Of particular interest would be US rate-setters' description of recent readings on inflation, with the latest print on 'core' personal consumption expenditures' prices having reached its long-sough goal of 2.0%.
Just as important would be markets' reaction to any change in the Fed's policy statement.
Against that backdrop, miners lent a hand in London, with Glencore, Fresnillo, Antofagasta, Rio Tinto and BHP Billiton all stronger on stronger prices for metals including copper and nickel, and against a background of mixed China data.
Overnight, the Caixin manufacturing purchasing managers' index for China edged up to 51.1 in April from 51.0 in March, beating expectations for a small drop to 50.9. However, the report said the country's manufacturers were facing a "sharply deteriorating foreign demand environment", with new export orders declining for the first time in 17 months.
Glencore was also boosted by a London court ruling a day earlier, which granted the FTSE 100 mining group an injunction after Israeli tycoon Dan Gertler filed a legal action last week in the DRC seeking to freeze proceeds from its mines in the country.
In other corporate news, Inmarsat rocketed as it said first-quarter pre-tax profit grew to $56m from $1.3m the year before, while Ocado shot higher as it announced a new international partnership with Sweden's ICA to develop its online grocery business.
Kitchen maker Howden Joinery's shares rallied after it posted a 15% jump in first-quarter UK revenue as it benefited from an extra week of trading compared to 2017, higher volumes and a weak comparative.
Stock in Sage meanwhile ticked up after the business software provider delivered first-half revenue growth of 6.3%, in line with its recent profit warning, and assured it had rooted out the problems.
Thomas Cook was boosted by an upgrade to 'outperform' from 'neutral' at Credit Suisse, which pointed to clearer skies ahead.
On the downside, shares in Paddy Power Betfair slumped after the bookie said underlying first-quarter earnings fell 6% as a result of new betting taxes and levies and start-up losses in its US businesses, while workspace provider IWG declined even as it reported an increase in first-quarter group revenue.
Standard Chartered reversed earlier gains as traders booked some profits after it posted a 20% increase in profit for the first quarter as revenue rose across the bank’s business. Pre-tax profit for the three months to the end of March rose to $1.19bn (£880m) from $990m as operating income increased 7% to £3.87bn.
Insurer Direct Line fell after it reported a 5% drop in gross written premiums for the first quarter and warned that claims associated with the cold weather at the beginning of the year would eat up its full annual weather budget.
Indivior lost ground despite releasing in-line first-quarter results and saying it was no track to meet full-year guidance, while building materials group CRH slipped as it began the first phase of its share buyback programme.
Market Movers
FTSE 100 (UKX) 7,543.20 0.30%
FTSE 250 (MCX) 20,506.27 0.78%
techMARK (TASX) 3,459.60 -0.32%
FTSE 100 - Risers
Evraz (EVR) 476.00p 5.17%
Fresnillo (FRES) 1,286.00p 3.29%
Anglo American (AAL) 1,757.40p 3.17%
Glencore (GLEN) 357.90p 3.16%
TUI AG Reg Shs (DI) (TUI) 1,701.00p 3.00%
Rio Tinto (RIO) 4,029.00p 2.93%
BHP Billiton (BLT) 1,561.00p 2.78%
Hargreaves Lansdown (HL.) 1,811.50p 2.46%
Antofagasta (ANTO) 980.20p 2.19%
CRH (CRH) 2,639.00p 2.17%
FTSE 100 - Fallers
Paddy Power Betfair (PPB) 6,840.00p -5.72%
Sainsbury (J) (SBRY) 305.00p -3.02%
Direct Line Insurance Group (DLG) 366.40p -2.63%
Kingfisher (KGF) 290.60p -1.92%
Barratt Developments (BDEV) 554.60p -1.77%
ITV (ITV) 151.55p -1.65%
Whitbread (WTB) 4,262.00p -1.59%
Unilever (ULVR) 4,000.00p -1.54%
RSA Insurance Group (RSA) 650.00p -1.13%
BT Group (BT.A) 242.25p -1.12%
FTSE 250 - Risers
Inmarsat (ISAT) 391.20p 8.13%
Howden Joinery Group (HWDN) 510.00p 6.25%
Senior (SNR) 322.40p 5.91%
Ferrexpo (FXPO) 237.80p 5.69%
Kaz Minerals (KAZ) 940.00p 4.98%
Syncona Limited NPV (SYNC) 208.00p 4.84%
Sophos Group (SOPH) 525.50p 4.68%
Contour Global (GLO) 254.00p 4.10%
TalkTalk Telecom Group (TALK) 134.90p 4.09%
Thomas Cook Group (TCG) 131.60p 3.87%
FTSE 250 - Fallers
IWG (IWG) 234.00p -4.10%
Spectris (SXS) 2,705.00p -3.70%
Renewi (RWI) 70.40p -2.63%
Capital & Counties Properties (CAPC) 279.30p -2.55%
Wetherspoon (J.D.) (JDW) 1,149.00p -2.54%
Kier Group (KIE) 1,056.00p -2.22%
Derwent London (DLN) 3,168.00p -2.07%
William Hill (WMH) 289.00p -2.07%
B&M European Value Retail S.A. (DI) (BME) 383.50p -1.69%
OneSavings Bank (OSB) 392.20p -1.61%