BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - U.K. stocks were moving higher on Tuesday ahead of the meeting of the latest U.S. Federal Reserve starting later today.
The U.S. central bank is unlikely to cut rates at its two-day meeting, but the Fed's statement on Wednesday may offer fresh clues as to the timing around a possible interest-rate cut later this year.
Markets have nearly priced in hopes for a rate cut eventually since the Fed chairman made remarks on June 4 suggesting a lower rate.
Meanwhile, European Central Bank President Mario Draghi said earlier today that the central bank still has room to cut interest rates and measures to cushion the side effect from low interest rates.
Speaking at the ECB Forum on Central Banking in Sintra, Portugal, Draghi said, 'Further cuts in policy interest rates and mitigating measures to contain any side effects remain part of our tools.' 'And the APP [asset purchase program] still has considerable headroom.'
The benchmark FTSE 100 was up 42 points or 0.57 percent at 7,399 after gaining 0.2 percent in the previous session.
Ashtead shares rallied 3.3 percent. The industrial equipment rental company hiked its full-year dividend by 21 percent after delivering a strong fourth quarter.
AstraZeneca advanced 1.6 percent. The drug major and Merck & Co., Inc. announced that the European Commission has approved Lynparza (olaparib) as a 1st-line maintenance treatment for women with BRCA-mutated advanced ovarian cancer.
Safestore Holdings shed 0.8 percent after reporting a fall in pre-tax profits in the six months to the end of April.
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