London pre-open: Stocks seen muted as investors mull Fed
London stocks were set for a muted open on Thursday as investors mulled the latest policy announcement from the Federal Reserve.
The FTSE 100 was expected to open just three points higher at 7,275.
On Wednesday, the Fed stood pat on interest rates, as expected, while Chair Janet Yellen signalled that one more rate increase is likely by the end of the year. In addition, the central bank will start winding down its $4.5trn balance sheet in October.
CMC Markets analyst Michael Hewson said: "As expected the US Federal Reserve fired the starting gun on its plans to reduce the size of its balance sheet, with plans to begin the process next month, though with an initial $10bn roll off, it is likely to take a very long time, so much so you could argue that glaciers move faster. The bank also left interest rates unchanged, while at the same time signalling that they retained the option of raising rates one more time this year.
"None of this should have been in doubt, particularly keeping the option of another rate rise on the table, given that any December decision still remains some distance away. The first rule of central banking is always making sure that all the various options are kept open, despite concerns about the economic damage caused by hurricanes Harvey and Irma, might do to their projections."
On the data front, BBA mortgage approvals and public sector net borrowing figures are at 0930 BST.
In corporate news, CRH has struck a deal to acquire Kansas-based Ash Grove Cement Company for $3.5bn.
The acquisition, which will be paid for using existing funds, is expected to close around the end of the year 2017.
Fresnillo issued a statement in a bid to reassure investors in its operations following the destructive and fatal earthquake that struck near Mexico City on Wednesday.
The FTSE 100 company - one of Mexico’s largest gold and silver producers - said its corporate headquarters in Mexico City was assessed as having “no structural damage” by specialists and declared fully safe to occupy, with all administrative functions resuming.
It also confirmed that all its operations - both mine sites and associated infrastructure - were unaffected by the earthquake and were continuing as normal.
Capita grew underlying profits 46% in the first six months of the year and said they would "rise modestly" in the second half compared to the first.