FTSE inches down

The London market fluctuated today ahead of a decision by the US Federal Reserve on how they intend to stimulate economic recovery.

The FTSE 100 Index closed 8 points lower at 5748.9, just hours before the Fed was expected to unveil a second bout of quantitative easing.

Investors were waiting to discover exactly how much the Fed planned to pump into the world's largest economy in a bid to jumpstart the recovery.

Expectations of further QE in the US weakened the dollar and saw the pound up against the greenback at 1.60. The pound was also up against the euro at 1.14.

Traders were cheered, however, by Lloyds Banking Group's success in securing Santander UK boss Antonio Horta-Osorio as its new chief executive.

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

Shares were up 3% or 1.8p at 69.2p, 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.

Insurance group Admiral was just behind Lloyds 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 43p to 1670p.

Edinburgh-based life and pensions firm Standard Life lost earlier gains, down 1.8p to 227.2p, despite posting a 34% rise in new business in the first nine months of the year.

Next shares slumped 2% after the retailer 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 49p to 2180p.

Defence firm Cobham was the biggest faller in the top flight, down 22.3p to 211.5p 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 14% 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 10.5p to 90p.

The biggest Footsie risers were Lloyds up 1.8p at 69.2p, Admiral ahead 43p at 1670p, Vedanta Resources up 45p at 2097p, and Standard Chartered ahead 38.5p at 1852p.

The biggest Footsie fallers were Cobham down 22.3p at 211.5p, Antofagasta off 61p at 1323p, BAE Systems down 10.4p at 343.1p, and Sage off 8p at 267.3p.