London midday: FTSE edges higher ahead of expected Fed rate cut
By Michele Maatouk
Date: Wednesday 10 Dec 2025
(Sharecast News) - London stocks had edged higher by midday on Wednesday as investors eyed the latest policy announcement from the US Federal Reserve, which is widely expected to cut rates by 25 basis points.
The FTSE 100 was up 0.2% at 9,656.18.
Joshua Mahony, chief market analyst at Scope Markets, said: "So far we have seen 150-basis points worth of rate cuts from the Fed, and many within the committee will perceive that today's expected easing should precede a period of patience. After-all, for all the concerns around the job market, unemployment remains low and inflation continues to cause consternation for many. The last Fed minutes had signalled that a number of members perceived a December rate cut as questionable, although commentary since has certainly shifted the narrative back towards a move this time around.
"The key question today is whether this turns out to be perceived as a hawkish cut, with the narrative likely to be shaped by expectations of future policy rather than weather we see the Fed cut rates today. With market pricing a 90% chance that the committee ease today, there will be a focus on the dot plot and economic forecasts to guide us on the pathway for 2026. Nonetheless, what the committee cannot account for in their projections is the fact that the Fed could look very different before long, with a new Trump appointed Chair in May and efforts to oust Lisa Cook ongoing.
"Nonetheless, for today the gains seen for the dollar highlight growing fear that optimism over a cut could soon turn to concern that we have to wait months for the next move. With US markets having already recovered much of the downside seen in November, monetary policy looks an unlikely source of optimism to carry those gains through to year end."
In equity markets, educational publisher Pearson was the top riser on the FTSE 100 after JPMorgan lifted its price target to 1,440p from 1,330p. It rates the shares at 'overweight'.
Berkeley Group gained even as the housebuilder posted weaker interim revenues and profits amid a "very challenging" macroeconomic and regulatory environment.
Revenues came in at £1.2bn in the six months to 31 October, down from £1.3bn a year previously, while pre-tax profits fell 7.7% to £254m. However, net cash was £5m higher, at £342m, and net asset value per share rose 5% to £37.63.
The firm also said it remained on track to meet full-year profit guidance.
WPP a high riser gain, having rallied on Tuesday after the advertising giant reportedly secured a major government contract worth around £2bn.
Ocado surged after data from NielsenIQ showed that the online grocer remains the fastest growing retailer.
FirstGroup advanced after saying it had been named as the preferred operator for the London Overground suburban rail network contract by Transport for London.
Ventilation products manufacturer Volution rose as it said trading in the first four months of FY26 had been positive, and announced the agreed acquisition of Australia's AC Industries for up to AUD$178.9m (£89.5m).
William Hill owner Evoke shot up after confirming it is considering a potential sale of the group, or some of the company's assets and/or business units.
Market Movers
FTSE 100 (UKX) 9,656.18 0.15%
FTSE 250 (MCX) 21,886.82 -0.10%
techMARK (TASX) 5,555.05 -0.50%
FTSE 100 - Risers
Pearson (PSON) 1,045.00p 4.03%
Berkeley Group Holdings (The) (BKG) 3,678.00p 2.74%
Scottish Mortgage Inv Trust (SMT) 1,129.50p 2.73%
HSBC Holdings (HSBA) 1,089.20p 1.99%
WPP (WPP) 322.80p 1.77%
Standard Chartered (STAN) 1,695.00p 1.56%
Tesco (TSCO) 446.60p 1.50%
Rio Tinto (RIO) 5,598.00p 1.27%
Antofagasta (ANTO) 2,957.00p 1.23%
Anglo American (AAL) 2,949.00p 1.13%
FTSE 100 - Fallers
Kingfisher (KGF) 300.60p -1.73%
Smurfit Westrock (DI) (SWR) 2,647.00p -1.53%
CRH (CDI) (CRH) 9,262.00p -1.47%
Halma (HLMA) 3,578.00p -1.32%
BAE Systems (BA.) 1,704.00p -1.30%
Mondi (MNDI) 853.60p -1.27%
St James's Place (STJ) 1,363.50p -1.23%
Severn Trent (SVT) 2,715.00p -1.20%
Phoenix Group Holdings (PHNX) 680.50p -1.16%
The Sage Group (SGE) 1,070.50p -1.15%
FTSE 250 - Risers
Ocado Group (OCDO) 206.50p 6.03%
FirstGroup (FGP) 184.30p 5.25%
Volution Group (FAN) 644.00p 5.06%
Trustpilot Group (TRST) 165.70p 2.47%
Wickes Group (WIX) 238.00p 2.15%
Wizz Air Holdings (WIZZ) 1,094.00p 2.05%
Trainline (TRN) 219.00p 1.86%
Edinburgh Worldwide Inv Trust (EWI) 213.50p 1.67%
Hochschild Mining (HOC) 441.60p 1.38%
BlackRock World Mining Trust (BRWM) 764.00p 1.33%
FTSE 250 - Fallers
Kainos Group (KNOS) 1,132.00p -4.87%
Oxford Nanopore Technologies (ONT) 126.20p -3.30%
Moonpig Group (MOON) 206.50p -2.36%
Chemring Group (CHG) 467.00p -2.20%
Helios Towers (HTWS) 161.60p -2.18%
QinetiQ Group (QQ.) 428.20p -1.97%
Avon Technologies (AVON) 1,770.00p -1.88%
Pantheon Infrastructure (PINT) 105.50p -1.86%
Renishaw (RSW) 3,480.00p -1.83%
NCC Group (NCC) 140.80p -1.68%
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN