London shares close lower as investors eye Fed rate decision; property cos weigh |
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Tue, 11 Dec 2007 17:46
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LONDON (Thomson Financial) - Leading shares closed at lower levels, with investors cautious ahead of tonight's US Federal Reserve rate decision, and as UK property companies weigh. At the close, the FTSE 100 index was down 28.5 points at 6536.9, off a low of 6,513.4, and down from a high of 6,597.5, while the FTSE 250 index was up 17.6 points at 10,647.9.Volume was thin, with 1.97 bln shares changing hands in 632,700 deals.The markets 'are apprehensive about the likely outcome this evening when the Federal Reserve announces its rate decision', said Mike Lenhoff from Brewin Dolphin.He said markets had 'come up very rapidly in a short space of time, and today is as good a day as any to pause for breath'.Most economists are expecting a quarter-point cut in the federal funds rate to 4.25 pct, but some are hoping for a half-point cut from what is the Fed's last meeting this year.On Wall Street, by London's close, the Dow Jones Industrial Average was down 18.9 at 13,708.1, with the S&P 500 index down 2.1 at 1,513.85, and the Nasdaq composite index up 2.53 points at 2,721.48.Back in London, UK property companies weighed heavily on the FTSE 100 index, following yesterday's announcement by New Star Asset Management that the value of its property portfolio has slumped by 17.8 pct since the end of July.British Land lost 39-1/2 pence to 933-1/2, Hammerson dropped 22 pence to 1,072-1/2, and Liberty International was down 12 pence at 1,146.tf.TFN-Europe_newsdesk@thomson.comtw/ajbCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Metals - Copper down on rising stocks; thin trade as mkt awaits US rate decision 