- FTSE 100 up 0.1%, FTMC down 0.4%
- Fed seen cutting rates, doubts remain on future path
- HSBC, Standard Chartered climb after BofA upgrade
Dec 10 (Reuters) - Britain's blue-chip FTSE 100 edged up on Wednesday, supported by gains in banking stocks as investors awaited the U.S. Federal Reserve's interest rate decision.
The FTSE 100 closed up 0.1%, while the domestically focussed FTSE 250 index dipped 0.4% to a two-week low.
Lenders HSBC and Standard Chartered rose 3.2% and 2.2%, respectively, following bullish recommendations from BofA Global Research.
The FTSE 350 banks index rose 1.8% and led gains among the sectors.
The Fed is widely expected to cut interest rates by 25 basis points to the 3.50%-3.75% range, but may signal a non-committal or even hawkish approach to next year's rate path given the division among policymakers.
The decision is due at 1900 GMT.
Traders are also looking ahead to UK GDP data for October on Friday. Signs of easing inflation and a weakening labour market have pushed traders to price in a 25 bps rate cut from the Bank of England next week, with further cuts seen next year.
Among other stocks, Pearson climbed 2% after J.P. Morgan named the education company one of its top picks in the media sector.
FirstGroup added 5% after the transport operator was named the preferred bidder for London's Overground suburban rail network in a contract worth about 3 billion pounds ($4 billion).
Berkeley rose 3.2% after the homebuilder maintained its annual guidance and voiced confidence in the long-term outlook for London, its key market.
Evoke surged 14% after the William Hill UK and 888 owner said it was reviewing strategic options including a potential sale, just weeks after tax hikes on online gaming and sports betting forced it to withdraw its financial guidance.
($1 = 0.7502 pounds)
Reporting by Tharuniyaa Lakshmi and Sruthi Shankar in Bengaluru. Editing by Shinjini Ganguli and Mark Potter
Source: Reuters