LONDON MARKETS: FTSE 100 Rises, Driven By Banks As Market Watches Out For Fed Meeting

By Barbara Kollmeyer, MarketWatch

London's main stock index rose Thursday, with banks and resource stocks again leading the gains as investors kept a watch out for a U.S. Federal Reserve meeting.

How are markets performing?

The FTSE 100 index rose 0.5% to 7,150.17 from Wednesday's rally of 1.1% (http://www.marketwatch.com/story/london-stocks-climb-amid-lack-of-surprises-in-us-midterms-2018-11-07).

The British pound fell to $1.3104 from $1.1326 late Wednesday in New York.

What's moving markets?

A relief rally was triggered for the FTSE on Wednesday, along with global stocks, after midterm elections that came in largely as forecasters expected, with signs that U.S. President Donald Trump may seek bipartisan cooperation also a positive.

Some of that optimism remained for Thursday, but investors were also looking forward to the outcome of a Federal Open Market Committee meeting, which isn't expected to yield a change in interest rates. Investors will be eager to see what the Fed will indeed stick to its mantra of gradual hikes in rates, even after October's meltdown for stocks.

Brexit was back on the radar amid reports a key cabinet meeting to discuss the U.K.'s position has been delayed from Thursday to the weekend. The Guardian (https://www.theguardian.com/politics/2018/nov/07/crunch-cabinet-meeting-over-theresa-may-brexit-deal-delayed-amid-row) reported that a disagreement over whether cabinet members could see the final working document over the Irish border backstop. Irish Prime Minister Leo Varadkar suggested on Wednesday it would be tough to still seal a deal between London and Brussels in November.

Up 1% this week so far, the British pound eased up, which helped provide support for the main index as multinational companies generate most of their sales in other currencies.

What stocks are moving?

Heavyweight HSBC PLC (HSBA.LN) (HSBA.LN) rose 1.5%, with Lloyds Banking Group PLC (LLOY.LN) (LLOY.LN) up 2.8% and Barclays PLC (BCS) (BCS) up 2.4%.

Read:HSBC customer accounts compromised in data breach (http://www.marketwatch.com/story/hsbc-customer-accounts-compromised-in-data-breach-2018-11-06)

Royal Dutch Shell Group PLC (RDSA.LN) (RDSA.LN) rose 0.7% and Rio Tinto PLC (RIO.LN) (RIO.LN) gained 1.6%.

Burberry Group PLC (BRBY.LN) shot up 2.6% after the luxury retailer posted a 36% profit rise and backed its 2019 guidance. (http://www.marketwatch.com/story/burberry-profit-up-36-backs-2019-guidance-2018-11-08)

(http://www.marketwatch.com/story/burberry-profit-up-36-backs-2019-guidance-2018-11-08)-- Annekan Tappe contributed to this report

(END) Dow Jones Newswires

November 08, 2018 08:44 ET (13:44 GMT)

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