U.K. stocks climb as unemployment rate declines to six-year low
By Bloomberg
U.K. stocks advanced, as a measure of unemployment fell to a six-year low, while investors awaited the Federal Reserve's monetary-policy decision and tomorrow's vote on Scottish independence.
DS Smith Plc rose 5 percent after saying corrugated-box sales are increasing at a faster pace than last year. Daily Mail and General Trust Plc dropped 6.4 percent after saying that operating profit this year will be at the lower end of market expectations because of a delay in the release of its risk- management solutions product. Smiths Group Plc slipped 4.8 percent after reporting a decline in full-year revenue.
The FTSE 100 Index climbed 13.21 points, or 0.2 percent, to 6,805.45 at 9:47 a.m. in London. The broader FTSE All-Share Index also advanced 0.2 percent today, while Ireland's ISEQ Index added 0.5 percent.
The U.K. jobless rate based on International Labor Organisation methods fell to 6.2 percent in the three months through July from 6.4 percent the previous period, a bigger decline than economists had forecast. A separate measure for August put the claimant-count rate at 2.9 percent. Both rates are at their lowest levels since 2008.
The Federal Reserve will update investors on monetary policy at 2 p.m. in Washington and Chair Janet Yellen holds a press conference 30 minutes later. The central bank will probably reduce monthly bond purchases by $10 billion, to $15 billion, keeping it on track to announce an end to the program in October.
The Fed is assessing the strength of the world's largest economy as it winds down bond-buying and considers raising interest rates. Investors speculate that the central bank will maintain its pledge to keep its benchmark rate low for a considerable time after it completes the monthly bond purchases.
Investors will also be watching the final day of campaigning over Scotland's future in the U.K. before a vote on independence tomorrow. Three polls last night showed the anti- independence group leading the Yes campaign by 52 percent to 48 percent, excluding undecided voters.
Minutes from the Bank of England's Sept. 3-4 meeting showed policy makers split for a second month, with the majority citing increased risks from Europe and muted inflation pressures as supporting the case for keeping the key rate at a record low.
Policy makers Martin Weale and Ian McCafferty voted for a 25 basis point increase, sharpening the division between them and the remaining seven members of the panel. The bank held the key rate at 0.5 percent this month.