London equities rose in low-volume deals on Wednesday, amid a public holiday in much of Asia and Europe, before the Federal Reserve’s latest interest rate call and following disappointing US data.
The FTSE 100 index of top companies won 0.33 percent to 6,451.29 points, as dealers also absorbed better-than-expected British manufacturing data.
The US central bank’s Federal Open Market Committee (FOMC) will announce the outcome of its latest monetary policy meeting at 1815 GMT.
Ahead of the decision, investors digested US jobs and manufacturing data. Payrolls firm ADP reported that the American private sector added only 119,000 jobs in April, the slowest job growth in seven months.
Elsewhere, US manufacturing activity slowed sharply in April to the slowest pace of the year, the ISM report released Wednesday showed.
“With European equities closed for the May day bank holiday, UK traders initially sent stocks (higher) as strong corporate earnings, optimism over a European rate cut and better than expected (British) PMI manufacturing numbers contributed to strong risk appetite early on,” said CMC Markets trader Tobias Morris.
“The bullish mood dissipated in afternoon trade however, as weaker than expected macro data from the States capped gains in the short term.”
Telecom giant BT was the top performer, rising 3.44 percent — 9.5 pence — to 285.7.
Technology company ARM Holdings was the next biggest riser, advancing 3.01 percent — 30 pence — to 1,026.
Eurasian Natural Resources Corporation suffered the greatest fall, losing 4.23 percent –11.6 pence — to end at 262.8 pence, followed by Admiral Group which dropped 3.12 percent — 40 pence — to 1,241.
Lloyds Banking Group was the most traded stock, with 97.04 million units changing hands, followed by Vodafone with 40.75 million.
On the currency markets the pound edged up to $1.5584 at 16.15 GMT from $1.5482 around the same time Tuesday. It slipped to 1.1809 euros from 1.1884 over the same period.
FTSE rises amid May Day holiday
