Overview: The FTSE 100 is projected to start slightly lower today in anticipation of the results from the Fed’s ongoing two-day policy setting meeting in the US, which is expected to retain the current interest rates and keep the current monetary policy in place.
Investors in the US had to digest a batch of mixed data yesterday as while the New York Fed’s business conditions index unexpectedly fell to 2.55 in December from 23.51 in the previous month, signalling a decline in manufacturing activity in the state, and wholesale prices rose 1.8% in November due to increase sin energy prices, industrial production climbed 0.8% in November to bolster the falling stock markets.
The Dow Jones Industrial Average slumped 0.5%, as did the broader S&P 500 index and the technology heavy Nasdaq composite.
Asian markets also were bearish today with Hong Kong’s Hang Seng sliding 0.9%, while South Korea’s KOSPI and China’s Shanghai composite index declined marginally. Japan’s benchmark Nikkei 225 did better, standing 0.6% above the opening level late in today’s session.
The UK blue chip index was in decline yesterday, shedding 0.5%.
Insurer Legal & General (LSE: LGEN) was the top performer in the FTSE 100 yesterday with a 2.6% gain. Severn Trent (LSE: SVT) was close, climbing 2.5%, while fellow utility stock United Utilities (LSE: UU) advanced 2.1%. Other notable risers included cruise operator Carnival (LSE: CCL) and bank Royal Bank of Scotland (LSE: RBS), which both added more than 2%.
The biggest fallers included silver miner Fresnillo (LSE: FRES), bank HSBC (LSE: HSBA) and engineering firm Amec (LSE: AMEC), which all lost about 2.5%. Another banking stock Barclays (LSE: BARC), oil and gas company Tullow Oil (LSE: TLW), hedge fund manager Man Group (LSE: EMG), airline British Airways (LSE: BAY) and Home Retail Group (LSE: HOME) followed with losses of over 2%.
Commodities
Oil prices recouped yesterday’s losses as January Brent Crude climbed to US$72.35/barrel, while US light, sweet crude improved to US$70.81/barrel.
Precious metals headed in different directions. Gold rose to US$1,126/oz, but silver made little headway, remaining at US$17.39/oz, while platinum slid to US$1,443/oz.
Base metals also were mixed. Zinc once again slipped below US$1.04/lb, while copper retreated to US$3.09/lb. Nickel, however, did better, rising to US$7.56/lb.