FTSE weakens, Fed in focus

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Reuters: London, Mar 21 2013, 03:19 IST
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The FTSE 100 fell on Wednesday, weighed down by mining stocks, with traders citing some anxiety ahead of the outcome of a U.S. central bank meeting.

The FTSE 100 ended down 8.62 points, or 0.1 percent, at 6,432.70, declining for a fourth consecutive session - a run of losses not seen since November 2012.

Mining stocks, among the most sensitive to market nervousness, were left nursing a 0.8 percent drop.

ENRC was among the worst off, down 1.9 percent in trading volume at more than 1-1/2 times its 90-day daily average, after the Kazakh miner took a larger than expected $1.5 billion charge, dragging it to a loss in 2012.

Peer Anglo American was the biggest laggard on the FTSE 100, off 2.6 percent as the stock, alongside Aviva, HSBC and InterContinental Hotels, traded without the attraction of its latest dividend.

In all, companies trading ex-dividend exerted downward pressure on the FTSE 100 index to the tune of 11.78 points.

"A slight bit of caution before the completion of the Fed meeting... Although they're not likely to change any policy at all, investors are just worried whether there will be a shift towards a slightly more hawkish disposition or not," Chris Beauchamp, market analyst at IG Index, said.

The U.S. Federal Reserve will release its policy statement at 1800 GMT, following which Fed Chairman Ben Bernanke will field questions at a news conference.

Markets expect the Fed to maintain its $85 billion monthly bond-buying stimulus effort but they will closely monitor Bernanke's comments for signals on how long

... contd.

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