FTSE 100 index little changed after flurry of earnings reports, FOMC meeting in focus

Britains headline index swung between minor gains and losses on Wednesday as investors digested a flurry of earnings reports, while awaiting US economy growth data, as well as the outcome of FOMCs two-day meeting. President Vladimir Putins reaction to additional sanctions imposed by the EU and US on Tuesday fell under the spotlights on the geopolitcal scene.

The FTSE 100 index stood at 6 807.30 points at 9:45 GMT, down 0.01% on the day, having shifted in a daily range between 6 812.50 and 6 788.50 points. Britains top equity index added 0.29%, or 19.68 points, on Tuesday to close the trading session at 6 807.75 points. The index is up 0.2% so far this week.

Investors eyed Feds two-day policy meeting which concludes today, with broad market expectations pointing to a sixth consecutive $10-billion reduction of the central banks unprecedented bond-buying program, down to $25 billion per month.

EU leaders agreed yesterday on their toughest sanctions against Russia to date, limiting the export of equipment used to modernize the oil industry and prohibiting the sale of equipment for military purposes, as well as barring state-owned banks from selling bonds or shares in Europe. Several hours later, the US imposed sanctions on three Russian banks and a state-owned shipbuilding company. The focus is now pointed at President Vladimir Putin’s response to the new round of penalties.

In economic releases, the Commerce Department is likely to report that the US economy grew by an annualized 3.0% in the second quarter, compared to the preceding three months’ 2.9% contraction. Meanwhile, the Labor Department is expected to report on Friday that US employers added 230 000 jobs this month, compared to 288 000 in June, while the unemployment rate is anticipated to have remained flat at 6.1%.

Investors will also scour key inflation and employment data from Europe through the end of the week, as well as manufacturing activity gauges from China on Friday.

Corporate news, top movers

The FTSE 100s top gainers for the day were Barclays Plc, Travis Perkins Plc and Royal Bank of Scotland Plc.

Barclays topped the leaderboard and gained 3.83%, or 8.40 pence, to trade at 227.50 pence at 9:23 GMT. The lender announced that underlying profit fell by 7% in the first half of the year due to declining investment bank revenue, as well as currency movements. The drop, however, was partially offset by improvements in personal and corporate banking and was lower compared to analysts forecasts.

Travis Perkins rose by 3.31%, or 54.50 pence, to 1 699.50 pence by 9:26 GMT. The do-it-yourself retailer reported that group revenue soared 11.5%, or 281 million pounds, to 2.731 billion pounds in the first half. Earnings before interest, tax and amortization rose by 28 million pounds to 175 million as all divisions posted an increase in operating profits.

Royal Bank of Scotland added 2.18%, or 7.70 pence, to trade at 361.70 pence, while Capita Plc gained 1.69%, or 20.50 pence, to $1 235.50 pence.

Top losers

The top-three losers for the day were Antofagasta Plc, Sainsbury Plc and Compass Group Plc.

Antofagasta lost 2.60%, or 22.25 pence, to trade at 832.75 pence. The Chilean miner bottomed on the board despite reporting a 5% quarter-on-quarter jump in its second-quarter copper output, which topped predictions, and reaffirmed it is on track to meet its full-year guidance.

Rio Tinto was also out of favor, having declined by 0.68%, or 23.50 pence, to 3 451.50 pence. The global miner announced it has agreed to sell its coal assets in Mozambique for $50 million to International Coal Ventures Private Limited.

Compass Group plunged 1.81%, or 18.25 pence, by 9:38 GMT to trade at 989.75 pence. The global caterer warned it may face negative currency headwinds amounting to 92 million pounds, or 7.3% on the 2013 full year underlying operating profit.

Sainsbury shed 2.06%, or 6.65 pence, to trade at 316.65 pence at 9:41 GMT. Meanwhile, Tullow Oil fell by 0.49%, or 3.75 pence, to 760.25 pence as it reported a first-half net loss after writing off $400 million in exploration costs.

Technical view

According to Binary Tribune’s daily analysis, in case the FTSE 100 index breaches the first resistance level at 6834.40 points, it will probably continue up to test 6861.05. Should the second key resistance be broken, the blue-chip index will most likely attempt to advance to 6886.60 points.

If it manages to breach the first key support at 6782.20, the index will probably continue to drop and test 6756.65. With this second key support broken, movement to the downside will probably continue to 6730.00 points.