Markets update: Banks weaker ahead of US rate move

The ISEQ Index edged 8 points higher this morning, at 5887 with most stocks in positive territory but the two leading banks looking…

The ISEQ Index edged 8 points higher this morning, at 5887 with most stocks in positive territory but the two leading banks looking weaker.

AIB fell 24 cents to euro 12.60 while Bank of Ireland slipped 7 cents to euro 10.45. Trade was subdued across European equity markets today as market makers await the US Federal Reserve's announcement on interest rates expected tomorrow.

Leading industrials CRH and Smurfit, who have substantial interest in the US, moved higher on hopes that the Fed will cut rates in an attempt to revive the flagging US economy. CRH moved 5 cents higher to 20.0 while Smurfit edged 1 cent higher to euro 1.97.

In London, the FTSE 100 index was 0.3 points higher at 6,294.6, above its early morning low of 6,269.4, but still below an opening peak of 6,302.8. With no important economic data releases in Britain or the US today, there was little to distract from the wait for the outcome of the Fed meeting tomorrow.

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Despite the surprise US rate cut at the start of this month, commentators are still hopeful that the Federal Reserve will sanction another reduction in borrowing rates, although the market is undecided over whether a cut of 25 or 50 basis points will be applied.