FTSE edges higher as US rates decision looms
The FTSE 100 closed just 8.33 points higher, or 0.11%, to 7,570.69.
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London’s FTSE 100 tipped into the green amid a slow start to the week as investors brace for crucial global economics news.
The blue-chip index was lifted by online grocer Ocado and chemicals giant Croda, which enjoyed a rebound after seeing heavy losses on Friday following issuing a profit warning.
Losses for miners and energy stocks, fuelled by sinking oil and gas prices, did not manage to offset the gains.
The price of Brent crude oil slid by nearly 3% to 72.6 US dollars per barrel.
The FTSE 100 closed just 8.33 points higher, or 0.11%, to 7,570.69.
Stocks have opted to continue their move higher for the time being, expecting US inflation to cool slightly and the Fed to leave rates unchanged
It comes ahead of closely-watched US inflation figures on Tuesday and the Fed making its all-important rates decision on Wednesday.
Policymakers across the pond are poised to pause rising interest rates, but concerns linger over the nation’s stronger-than-expected jobs market and above-target inflation rate.
In the UK, investors have unemployment figures looming on Tuesday, which will give an indication on the health of the labour market.
The S&P 500 started the week on the front foot, climbing 0.35% in early trading, while the Dow Jones was up 0.15%.
It was also a strong start for markets elsewhere in Europe with Germany’s Dax up 0.93% and France’s Cac closing 0.52% higher.
The pound was down 0.7% against the US dollar to 1.2493, and down 0.6% against the euro to 1.1624.
Chris Beauchamp, chief market analyst at online trading platform IG, said: “It has been a notably positive start to a busy week for financial markets.
“Stocks have opted to continue their move higher for the time being, expecting US inflation to cool slightly and the Fed to leave rates unchanged.
“Should those assumptions prove wrong we can expect significant volatility across stocks and in the US dollar, with the latter likely to see further upside.”
In company news, shares in AO World jumped higher after Mike Ashley’s retail empire bought a £75 million stake in the online white goods retailer.
Frasers, which owns Sports Direct and House of Fraser, bought an 18.9% stake in AO which was announced after markets closed on Friday.
Shares in AO World closed 7.8% higher.
Elsewhere, shares in easyJet stayed firm despite a fresh wave of flight cancellations disrupting travel for 15,000 passengers.
The airline axed 54 flights scheduled to depart from Gatwick Airport on Sunday because of storms, with a further 55 grounded on Monday.
Investors were hopeful the weather-related disruption would be short-lived and its share price ticked up by 0.7%.
Meanwhile, shares in rival budget airline Wizz Air jumped by 4.3% on Monday.
The biggest risers on the FTSE 100 were Ocado, up 14p to 400.6p, Croda, up 168p to 5,442p, Auto Trader, up 19.2p to 637p, Experian, up 81p to 2,949p, and Airtel Africa, up 3.2p to 131.3p.
The biggest fallers on the FTSE 100 were Fresnillo, down 28.6p to 648.6p, Vodafone, down 2.03p to 72.85p, Segro, down 21.2p to 779.4p, BT, down 3.35p to 143.65p, and Anglo American, down 40.5p to 2,416.5p.