18/12/13 Market Movements

The FTSE 100 today closed up 5.89 points at 6.492.08  as investors awaited the outcome of the US Federal Reserve’s policy meeting which could trigger a scaling back of its huge US stimulus programme.

With the Fed due to wrap up its two-day policy meeting at 19.00, opinion remains split on whether it will announce a cut in its $85 billion a month bond-buying scheme known as quantitative easing (QE).  Some analysts believe the recent recovery in the US economy boosts the argument for a scale back, whilst others believe the central bank will wait until early 2014 to see if the recovery is sustainable.

Stock movements
Glaxosmithkline approached its interim buy price of 1540 as the stock price closed down 1.12% at 1548.50. .

Market news
Data released today showed the UK’s unemployment rate dropped to its lowest point in four and a half years.  The unemployment rate dropped to 7.4%, down from 7.6%.   The Bank of England previously said it would consider raising interest rates when the unemployment rate hits 7%.