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London pre-open: Stocks to fall ahead of Fed rate announcement

Wed 10 December 2025 07:27 | A A A

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(Sharecast News) - London stocks were set to fall at the open on Wednesday ahead of the latest policy announcement from the US Federal Reserve, which is widely expected to cut rates by 25 basis points.

The FTSE 100 was called to open around 25 points lower.

Danske Bank said: "We expect Powell to verbally push back against continuation of sequential rate cuts in early 2026.

"The updated rate projections, or 'dots', will likely reflect varied views within the FOMC, while macroeconomic projections will see only cosmetic changes. The Fed may also take further steps to support liquidity."

In corporate news, Berkeley Group posted weaker interim revenues and profits amid a "very challenging" macroeconomic and regulatory environment.

Revenues at the blue chip housebuilder came in at 1.2bn in the six months to 31 October, down from 1.3bn a year previously, while pre-tax profits fell 7.7% to 254m.

However, net cash was 5m higher, at 342m, and net asset value per share rose 5% to 37.63.

Executive chair Rob Perrins called it a "highly creditable performance...in a very challenging macroeconomic and regulatory environment".

The firm also said it remained on track to meet full-year profit guidance.

Ventilation products manufacturer Volution Group said that trading in the first four months of FY26 had been positive, with organic revenue growth of around 5% at constant currency.

Volution, which said all three regions delivered organic growth against a varied but generally challenging backdrop, said total revenues for the period were up more than 30%, including a 25% contribution from its recent acquisition of Fantech and a small foreign exchange benefit.

The $50bn merger of Anglo American and Canada's Teck Resources has been overwhelmingly approved by both sets of shareholders, the companies said.

Anglo investors voted 99% in favour, while in Vancouver Teck's class A common stockholders approved the deal by more than 99%, while 90% of votes from class B shareholders approved it.

Under the deal, Anglo will own 62.4% of the combined group, with Teck shareholders owning the rest. The primary listing will stay in London, but the merged group's headquarters will be in Vancouver.

The merger still has to gain approval from regulators and the Canadian government.

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