FTSE treading water ahead of Fed move

Investors cheered news today of Lloyds Banking Group’s success in securing Santander UK boss Antonio Horta-Osorio as its new chief executive.

The part-nationalised player was close to the top of the risers board in a bounce back from yesterday’s wary reaction to the bank’s third quarter update.

London’s wider FTSE 100 Index trod water – up 6.4 points to 5763.8 – as traders stayed on the sidelines due to uncertainty ahead of tonight’s decision by the US Federal Reserve over the need for more stimulus measures.

Sentiment on Wall Street will also reflect Republican success in winning control of the House of Representatives in mid-term US elections.

In London, attention was focused for a second session on Lloyds, with shares up 3% as Mr Horta-Osorio’s appointment to succeed outgoing boss Eric Daniels was seen as a coup for the group.

The highly-rated UK chief executive of Santander will join taxpayer-backed Lloyds on January 10 before taking on the post on March 1.

The appointment led to a turnaround in fortunes for Lloyds shares, which dropped 3% yesterday on growth fears following the company’s third quarter update. Lloyds recouped Tuesday’s loss to stand 2.3p higher at 69.7p.

The biggest rise in the top flight was achieved by car insurance group Admiral after a 28% hike in vehicle numbers and an increase in premium rates led to a more than 50% jump in third quarter turnover. With Admiral on track to meet profit forecasts, shares jumped 77p to 1704p.

Life and pensions firm Standard Life joined it on the list of top share risers, up 2.9p to 231.9p, after it posted a 34% rise in nine-month new business.

Next shares slumped 4% after it warned of price rises at the upper end of its expectations and said it may not maintain overall sales growth at the higher end of its 0% to 3% guidance. Shares fell 80p to 2149p.

Defence firm Cobham was the biggest faller in the top flight, down 22p to 211.8p or 9%, after it signalled that growth in 2010 may not be as strong as hoped.

In the FTSE 250, kitchen and bathroom unit supplier Howden Joinery roared 16% ahead on a full-year profits upgrade.

It thanked a strong performance in its key October trading period, although it remains cautious on its outlook for 2011. Shares raced 12.6p to 92.1p.