London shares exhibited a mixed performance on Wednesday, as investors opted to hold back on making significant commitments in anticipation of the U.S. Federal Reserve’s interest rate decision. The benchmark index FTSE 100 rose 0.1% by 1103, while the midcap FTSE 250 index dipped 0.1%, reflecting broader caution across European markets in anticipation of the Fed’s widely expected 25-basis-point rate cut.

London-listed lenders HSBC and Standard Chartered rose about 2% each after BofA Global Research upgraded their shares to “buy” and “neutral”, respectively. Shares of education company Pearson and business information group RELX climbed 1% and 3.9%, respectively, after J.P. Morgan named the companies its top picks in the media sector, stating that European media stocks have lagged due to “misplaced concerns.”

Overall, markets exhibited a calm demeanor as traders anticipated the Federal Reserve’s decision at 1900 and the release of the UK’s October GDP data, scheduled for Friday. Indicators of diminishing inflation and a softening labor market have led traders to anticipate a 25 basis point reduction in interest rates from the Bank of England in the upcoming week, with additional cuts projected for the following year. Among individual stocks, ventilation products supplier Volution Group rose 4.7% following its acquisition of Australia-based AC Industries.

FirstGroup opens new tab added 5.5% after the transport operator was named the preferred bidder for London’s Overground suburban rail network in a contract worth around 3 billion pounds over an initial eight-year term.
Berkeley opens new tab rose 2.7% after the homebuilder maintained its annual guidance and voiced confidence in the long-term outlook for London, its key market, despite reporting a drop in half-year profit.