London pre-open: Stocks seen higher as focus shifts firmly to the Fed

London stocks were expected to open higher on Wednesday, continuing on from the rally in the previous session as investors look to the start of the Federal Reserve’s two-day policy meeting.

The FTSE 100 was being called up 20 points at 6158.

“If you ask any trader why markets rallied yesterday, no one will answer you with any confidence,” said Jonathan Sudaria, a night dealer at London Capital Group.

“Some are putting it down to speculation that the Fed is going to delay the rate hike, whilst others will put it down to short covering in very nervous, thin markets. Either way, the FOMC, or rather speculation about what the OFMC will do continues to dominate sentiment.”

On the macroeconomic front, eye will be on the UK unemployment rate and claimant count at 0930 BST.

In the US, the consumer price index is at 1330 BST, while the NAHB housing market index is due at 1500 BST.

Galliford Try profit rises 20%

Full-year pre-tax profits at construction firm Galliford Try rose 20% to a record £114m on revenues of £2.43bn, an increase of 31%. The company said all businesses saw high levels of build cost inflation but early signs indicate the situation may be moderating.

Glencore has raised £1.6bn by placing new shares with institutions in order to pay off some of its debts, with senior management subscribing to just over a fifth of the shares. The issue represented 10% of the commodities company's total shares in issue and will be admitted to the London Stock Exchange and its secondary listing exchanges on 21 September.