- FTSE 100 rises 2nd day, trimming worst annual drop since 2008
- Fed announces interest-rate decision after U.K. markets close
U.K. stocks rose for a second day, hours before the Federal Reserve meeting at which officials may raise rates for the first time since 2006.
Glencore Plc and BHP Billiton Ltd. added 2.3 percent or more as miners extended a rebound. Pearson Plc gained 5.2 percent after Exane BNP Paribas raised its rating to outperform, citing an “all-time low” valuation. The stock tumbled 41 percent this year through yesterday.
Fed officials announce their rate decision after European markets close, with traders pricing in a 78 percent chance that they will increase borrowing costs. The FTSE 100 Index climbed 0.7 percent at the close in London, capping its biggest two-day rally in two months.
The equity gauge fell for eight straight sessions through Monday, pushing its slump this month to 4.6 percent and on track for its worst year since the 2008 financial crisis. A healthier U.K. economy and record-low interest rates haven’t been enough to counter the FTSE 100’s heavy exposure to commodity producers. Slumps in Anglo American Plc and Glencore Plc are dragging the benchmark toward its first back-to-back annual drop since 2002.
The broader FTSE All-Share Index also added 0.7 percent today, while Ireland’s ISEQ Index lost 0.2 percent.