UK Markets Steady Amid U.S. Fed Decision Anticipation

UK shares remained mixed as investors awaited the U.S. Federal Reserve's interest rate decision. FTSE 100 rose slightly, while FTSE 250 dipped. Key movements included hikes in HSBC and Standard Chartered stocks, as well as gains for Pearson, RELX, Volution Group, FirstGroup, and Berkeley amid cautious optimism.

On Wednesday, UK shares presented a mixed picture as cautious investors held off on significant trades ahead of the U.S. Federal Reserve's interest rate announcement.

FTSE 100 saw a mild increase of 0.1% by 1103 GMT, contrasting with the slight dip in the midcap FTSE 250 index by 0.1%. This trend reflected a broader European market cautiousness anticipating the Fed's expected 25-basis-point rate cut. Notably, HSBC and Standard Chartered shares climbed approximately 2% each following BofA Global Research's stock upgrade to 'buy' and 'neutral' from 'underperform'.

Pearson and RELX, identified as top media sector picks by J.P. Morgan due to misguided European media concerns, respectively rose 1% and 3.9%. Meanwhile, Volution Group saw a 4.7% increase post its acquisition of AC Industries. FirstGroup's shares surged 5.5% as it became the preferred bidder for London's Overground network, and Berkeley's stock rose 2.7% following maintained annual guidance and positive long-term London market outlook despite a half-year profit fall. The market dynamic occurred against the backdrop of expected UK's October GDP data and signs of easing inflation and a weakening labor market prompting anticipation of a 25 bps rate cut from the Bank of England next week.

(With inputs from agencies.)