Fed hopes boost stocks

Equity markets are in the black this morning, as investors are optimistic that the US Federal Reserve will maintain its stimulus package.

There has been a lot of speculation regarding what the Fed will do with regards to their monetary policy. Jon Hilsenrath of the Wall Street Journal has stated that he believes they will keep the size of their bond-buying programme in place in August, which has provided a boost to the equity markets.

Mining stocks are the biggest winner on the London market this morning, as natural resource stocks have been in an uptrend over the past month. Beijing recently announced infrastructure schemes to keep the economy growing, and traders feel that minerals like copper will be in demand.

In terms of corporate news, British Sky Broadcasting announced a record annual revenue of £7.2 billion. The company also revealed a £500 million share buy-back scheme and increased the dividend by 18%.

Publishing house Pearson reported a 2% increase in revenue for the first half of the year. The firm reiterated its full-year guidance, and the share price is up nearly 7%.

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