London midday: Miners lead UK stocks higher as investors await FOMC

Stimulus measures in China helped UK stocks higher on Wednesday with the heavyweight mining sector on the rise, though gains were limited as investors treaded cautiously before a policy decision from the Federal Reserve.

The FTSE 100 was trading up 0.15% at 6,803 by midday after settling at 6,792.24 on Tuesday, its lowest close since 22 August.

The index has traded broadly sideways over the past week as concerns about Chinese economic growth and nervousness ahead of the Federal Open Market Committee (FOMC) meeting and Scottish referendum have eroded risk appetite.

The two-day FOMC meeting wraps up after European markets close with investors watching for a possible change in language by chair Janet Yellen to signal when the first increase in interest rates may come after the end of quantitative easing.

The Fed is expected to keep interest rates on hold but slash a further $10bn off monthly bond purchases, leaving it on track to finish the programme in October.

Minutes from the latest Bank of England policy decision were released on Wednesday and showed that policymakers voted 7-2 in favour of keeping rates on hold, unchanged from the previous month. Nevertheless, analysts viewed the minutes as relatively dovish with committee members pointing out that "downside risks to UK growth in the medium term had probably increased".

Economic data was also in focus and showed that the UK jobless rate fell to 6.2% in the three months to July, down from 6.4% previously and the 6.3% consensus forecast.

Miners rise, Imagination rebounds after trading update

Mining stocks were mostly on the rise in morning trade after the People’s Bank of China injected more liquidity to its banking system, pumping $81bn into the five biggest state-owned banks. BHP Billiton, Glenecore, Anglo American and Rio Tinto were all in demand.

However, copper miner Antofagasta was bucking the trend after going ex-dividend.

Imagination Technologies rebounded strongly after a fall the previous session as it said that despite a volatile pound affecting sales, trading in the first quarter was in line with expectations. Sector peer ARM Holdings was also a high riser.

Engineer Smiths Group was heading the other way missing expectations with a 5% fall in annual revenues to £2.95bn on the back of foreign exchange headwinds and a small disposal.

Despite disappointing results in the fashion division, sportswear retailer JD Sports Fashion more than doubled first-half profits year-on-year thanks to strong performances across sports and outdoor clothing, helping shares higher early on.

Vodafone rose amid reports that it, along with network operator EE, are considering buying up parts of Phones 4U, the mobile-phone retailer that went into adminstration at the weekend.

Consumer-goods packaging group DS Smith gained after saying it had made good progress since the start of its financial year with volumes continuing to grow despite competitive market conditions.

Market Movers
techMARK 2,839.49 +0.26%
FTSE 100 6,802.72 +0.15%
FTSE 250 15,657.65 +0.41%

FTSE 100 - Risers
Barratt Developments (BDEV) 392.50p +3.21%
St James's Place (STJ) 694.00p +2.36%
International Consolidated Airlines Group SA (CDI) (IAG) 374.70p +2.18%
ARM Holdings (ARM) 939.50p +2.12%
Persimmon (PSN) 1,360.00p +2.10%
Intu Properties (INTU) 342.10p +1.82%
Lloyds Banking Group (LLOY) 74.64p +1.55%
Travis Perkins (TPK) 1,664.00p +1.46%
Bunzl (BNZL) 1,633.00p +1.37%
Schroders (SDR) 2,440.00p +1.33%

FTSE 100 - Fallers
Smiths Group (SMIN) 1,274.00p -5.56%
SABMiller (SAB) 3,599.00p -1.69%
Smith & Nephew (SN.) 1,053.00p -1.50%
Diageo (DGE) 1,825.00p -1.19%
Unilever (ULVR) 2,655.00p -1.08%
Antofagasta (ANTO) 754.00p -1.05%
Reckitt Benckiser Group (RB.) 5,440.00p -1.00%
Fresnillo (FRES) 805.00p -0.86%
GKN (GKN) 340.00p -0.82%
Admiral Group (ADM) 1,227.00p -0.81%

FTSE 250 - Risers
JD Sports Fashion (JD.) 435.00p +6.62%
Smith (DS) (SMDS) 288.00p +5.49%
Imagination Technologies Group (IMG) 198.00p +4.76%
Cairn Energy (CNE) 183.90p +3.31%
ICAP (IAP) 369.50p +2.90%
Just Eat (JE.) 290.00p +2.69%
Taylor Wimpey (TW.) 113.10p +2.63%
Spectris (SXS) 2,030.00p +2.47%
Hays (HAS) 126.90p +2.42%
Crest Nicholson Holdings (CRST) 333.60p +2.33%

FTSE 250 - Fallers
IG Group Holdings (IGG) 575.00p -4.72%
Oxford Instruments (OXIG) 1,100.00p -3.93%
International Public Partnerships Ltd. (INPP) 130.60p -2.90%
Rank Group (RNK) 159.00p -2.51%
Enterprise Inns (ETI) 112.20p -2.43%
Fenner (FENR) 354.70p -2.15%
Infinis Energy (INFI) 215.00p -1.56%
Telecom Plus (TEP) 1,333.00p -1.41%
HICL Infrastructure Company Ltd (HICL) 140.40p -1.40%
Stock Spirits Group (STCK) 293.00p -1.35%