People walk past an electronic information board at the London Stock Exchange in the City of London. The benchmark FTSE 100 index yesterday lost 0.17% to 6,780.90 points as traders looked ahead to Scotland’s independence vote.

 

AFP

 

European stocks ended mixed yesterday with sentiment buoyed by reports of Chinese stimulus, ahead of a US interest rate call, but investors in London were unsure a day ahead of Scotland’s independence referendum.

At the close of trading in the British capital, London’s benchmark FTSE 100 index had lost 0.17% to 6,780.90 points as traders looked ahead to Scotland’s independence vote.

In Paris, the CAC 40 index gained 0.50% to stand at 4,431.41, with the market bolstered after the French government won a confidence vote on its economic reforms.

Frankfurt’s DAX 30 advanced 0.30% to 9,661.50 points compared with Tuesday’s closing level.

Russian stocks fell after the news that top businessman Vladimir Yevtushenkov had been placed under house arrest in a money-laundering probe.

Sentiment on Wall Street at the opening was steady.

Asian equities mostly rose, with Hong Kong and Shanghai lifted by a report that China’s central bank had pumped $81bn (€62bn) into the country’s five biggest lenders, while traders awaited the Fed’s monetary policy decision.

Wall Street stocks posted solid gains overnight following reports of the new Chinese stimulus plan.

“Last night’s (Tuesday) US session saw the Dow finish at a new all-time closing high, with a fresh intraday high to boot,” said analyst Chris Beauchamp at trading firm IG.

“Added to this was news last night that the ‘No’ campaign still has the advantage—albeit a small one—over its rivals.”

Campaigners for, and against, Scottish independence scrambled for votes yesterday on the eve of a knife-edge referendum that could see Scotland break away from the UK.

Three new opinion polls published in yesterday’s papers all suggested a narrow majority supporting staying in the UK, but also showed that undecided people could swing it either way.

Investors were watching to see if the Federal Reserve will bring forward its timetable for raising interest rates as the US economy picks up speed.

The Fed has previously said it would keep rates low for a “considerable time” after ending its massive stimulus programme.

There are still concerns about the US economy among many investors, with some suggesting the bank will stick to its cautious approach.

“This really does seem to be culminating in a degree of risk aversion for many traders,” said market analyst Tony Cross of Trustnet Direct.

In Britain however, attention was squarely focused on Scotland’s looming referendum.

The pound had slumped last week to a 10-month dollar low and three-month euro troughs on concerns over the impact of possible Scottish independence. The pound yesterday rose to $1.6324 from $1.6268 late in New York on Tuesday. The euro retreated to 79.35 pence from 79.64 pence.

The European single currency edged up to $1.2954 from $1.2957 on Tuesday.

On the London Bullion Market, gold gained to $1,236 an ounce from $1,232.25.

 

 

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