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FTSE rises ahead of Fed message | |
(about 3 hours later) | |
(Noon): The London market saw healthy gains on hopes that the US Federal Reserve will indicate later that it is in no hurry to increase interest rates. | |
The FTSE 100 index was up 48.14 points at 6,450.31 in lunchtime trade. | |
The Fed is expected to confirm that it will end its policy of quantitative easing, but analysts do not expect any rate rises until well into next year. | |
"It is the commitment to low interest rates that is maintaining calm," said Brenda Kelly, market strategist at IG. | |
"Expectations are for a dovish Fed decision that will assuage fears about a premature rate hike." | |
Shares in Next dropped 0.7% after it cut its full-year profit guidance. The milder-than-usual weather over the past couple of months has hit demand for winter clothes. | |
It now expects full-year profits of £750m-£790m, down from its previous guidance of £775m-£815m. | It now expects full-year profits of £750m-£790m, down from its previous guidance of £775m-£815m. |
Other clothing retailers were hit by the news, with Marks and Spencer shares down 0.6% and Supergroup - the firm behind the Superdry brand - dropping 3.4%. | |
Shares in TUI Travel rose 1.7%. On Tuesday, TUI Travel and German company TUI AG approved the plan for the two to merge. | |
On the currency markets, the pound fell 0.1% against the dollar to $1.6116 and was also 0.1% lower against the euro at €1.2658. | |