London close: Stocks end flat ahead of Fed statement

22nd Jun 2011 16:44

After a poor start, the Footsie was pulled into positive territory for a brief moment but ended flat ahead of the Federal Reserve's decision over the interest rate and a possible QE3.Expectations are for the rate-setting committee to announce few changes, but one never knows for sure. There is now considerably higher uncertainty which surrounds trading in most asset classes of late. Some believe that Fed chairman Ben Bernanke may reduce his gross domestic product forecasts for the US economy in 2011. Back in London, markets stumbled after the Bank of England released the minutes of the latest Monetary Policy Committee meeting in which the committee voted 7-2 in favour of maintaining the Bank rate at 0.5%, changed from the 6-3 vote the months before.Hedge fund manager Man Group was the high riser of the day, leading the recovery, after some kind words from Credit Suisse. Man is "moving in the right direction", according to the Swiss brokerage, who upgraded the firm from a 'neutral' to an 'outperform' rating. The banking sector under the weather after analysts at HSBC downgraded the ratings of Barclays and Royal Bank of Scotland. FTSE 250-peers Kesa Electricals and Dixons Retail were notable risers today. Weak trading at its UK chain Comet held back sales at Kesa Electricals in the year to 30 April, the firm said today, adding that trading has been weaker than expected so far in the current financial year. But the shares were pulled higher after chairman David Newlands told reporters the company is looking at options for Comet, including a sale. Fellow electrical retailer Dixon's Retail, whose results are due tomorrow and which would stand to benefit from Comet's exit from the market, was also posting big gains. West Africa-focused miner Randgold Resources was on the rise, tracking gold prices higher. Gold futures were 0.78% higher at $1,558.50 as of 16:27 on Wednesday afternoon. Silver futures rose 0.83% to $36.68.Irish mining firm Kenmare Resources also found itself among the top performers on the FTSE 250, rising over 6.2%. Similarly, competitor Connemara Mining surged more than 6%, outperforming the basic materials sector. Meanwhile, water groups Severn Trent and United Utilities are on the decline on the FTSE 100, being the worst two performers on the blue chip index. Scottish engineer Weir is higher after extending its global reach with the acquisition of a majority interest in a South Korean valves business. Panmure Gordon raised its target price for the stock from 2,045p to 2,270p, saying that "Weir is well positioned to exploit this rapid rise in the pressure pumping equipment market." The chips were down for Imagination Technologies. The designer of graphic chips for computers and smartphones' sales were slightly short of expectations in the year to 30 April, but the company unveiled an impressive new target of annual sales of 1bn devices using its technology in five years.---BCFTSE 100 - RisersMan Group (EMG) 241.80p +4.86%Randgold Resources Ltd. (RRS) 4,928.00p +3.03%Burberry Group (BRBY) 1,392.00p +2.69%Kingfisher (KGF) 270.90p +2.55%Centrica (CNA) 327.20p +1.74%Imperial Tobacco Group (IMT) 2,030.00p +1.50%Associated British Foods (ABF) 1,073.00p +1.42%British Land Co (BLND) 592.00p +1.41%WPP (WPP) 753.50p +1.41%BT Group (BT.A) 200.90p +1.16%FTSE 100 - FallersUnited Utilities Group (UU.) 575.00p -3.44%Severn Trent (SVT) 1,398.00p -3.12%Barclays (BARC) 252.30p -2.55%Autonomy Corporation (AU.) 1,698.00p -2.47%Inmarsat (ISAT) 581.50p -2.35%Capita Group (CPI) 724.50p -2.03%Experian (EXPN) 761.00p -1.70%Standard Chartered (STAN) 1,550.00p -1.59%Petrofac Ltd. (PFC) 1,520.00p -1.55%Essar Energy (ESSR) 411.70p -1.34%