FTSE rises as taper fears recede

In mid-morning trading the FTSE 100 is up 25 points, with traders looking ahead to the Federal Reserve statement tomorrow.

Trading activity picked up in London this morning after yesterday’s storm turned the City into a ghost town. Equities opened higher, as traders know full well that the Federal Reserve will not be tapering its bond-buying scheme any time soon, thanks to the partial shutdown at the start of the month. Any change to US monetary policy this side of Christmas will come as an unpleasant surprise to traders. 

Lloyds Banking Group is still being haunted by the PPI scandal. The stock is trading 5p higher than the government's 73p breakeven price, but traders are still hesitant to buy into the bank, as it has put another £750 million aside for PPI compensation.

BP is at the top of the FTSE 100 leaderboard, as a 5.6% increase in dividend and stronger-than-expected profit caught investors’ attention.

Meanwhile, Standard Chartered is offside this morning, as the emerging-market-focused bank revealed a small decline in third-quarter revenue.

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