Market Report: Traders bet US Fed will keep the taps turned on into the  new year

 

A two-day meeting kicks off today at the US Federal Reserve to decide whether to bring to an end to the quantitative easing sooner rather than later.

But after weeks of doom-laden predictions and falls, the FTSE 100 closed up 82.24 to 6522.20 as traders started coming round to the idea that officials could wait until the new year to turn off the money taps.

Mike van Dulken at Accendo Markets said: “Consensus may have shifted back to favouring a delay until January, with potential for political hurdles returning should the Republicans start asking for too much following the budget deal, leading to another debt-ceiling stand-off early next year which may see the Fed hold off from any big decision.”

Aggreko led the biggest risers, up 129p to 1649p, on news it won the World Cup power generator contract.

Meanwhile, the biggest faller was RSA, down 2.4p at 94.1p, as shareholders reacted to the third profit warning in as many weeks after the problems at its Irish division, which cost chief executive Simon Lee his job. A downgrade by Deutsche Bank and negative outlook by ratings agency Fitch did not help, but UBS upgraded it from neutral to buy.

Elsewhere, persistent rumours that vultures were circling Cable & Wireless Communications for a possible takeover, sent shares up 1.8p to 49p. The company has been selling off non-core assets to focus on the Caribbean and Central American region, raising $1.4bn from disposals.

Other notable risers included Synergy Health up 77p to 1110p, as the medical services business said its order book had topped £1bn after deals in the US. The new contracts add £230m to the order book, which stands at £1.1bn.

Paper and packaging businesses also had a good day, with Mondi closing up 37.5p to 945.5p and rival RPC Group jumped 19p to 549p after announcing it has bought competitor Maynard & Harris Group for £103.5m.

Energy businesses also saw brisk trading yesterday, including Greka Drilling, up 0.5p to 14p, after signing a $65m contract with Essar Oil to drill 100 wells. And Northcote Energy managed a 0.05p rise to 0.9p as it started its fourth fracking operation in the US.

News
peopleFrankie Boyle responds to referendum result in characteristically offensive style
Arts and Entertainment
'New Tricks' star Dennis Waterman is departing from the show after he completes filming on two more episodes
tvHe is only remaining member of original cast
Arts and Entertainment
tvHighs and lows of the cast's careers since 2004
Sport
Gabriel Agbonlahor, Alexis Sanchez, Alan Pardew and Graziano Pelle
footballAfter QPR draw, follow Villa vs Arsenal, Newcastle vs Hull and Swansea vs Southampton
PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
musicBiographer Hunter Davies has collected nearly a hundred original manuscripts
New Articles
i100... with this review
Voices
Holly's review of Peterborough's Pizza Express quickly went viral on social media
New Articles
i100
Arts and Entertainment
musicHow female vocalists are now writing their own hits
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam