By Simon Kennedy
LONDON (MarketWatch) -- British stocks edged higher on
Wednesday, led by Lloyds Banking Group, which appointed a new chief
executive, with the focus remaining on the U.S. Federal Reserve's
announcement due later.
The U.K. FTSE 100 index gained 0.2% to 5,768.75 points in
late-morning trading on the London Stock Exchange. It rose 1.1% in
the previous session.
After the markets close in London, the Fed is expected to
announce a new round of quantitative easing.
Shares of Lloyds Banking Group (LYG) rallied 3.2% after the bank
announced that Antonio Horta-Osorio will become its new chief
executive on March 1.
Horta-Osorio is currently head of Banco Santander's (STD) U.K.
operations. He will take the helm from Eric Daniels, who had
previously announced plans to retire.
Also in the financial sector, shares of Standard Chartered PLC
advanced 1.9%.
Insurance firm Admiral Group PLC surged 4.4% after it reported
that its third-quarter turnover surged more than 50% from the
year-earlier period to £446 million. The company added that
it's on track to meet full-year profit estimates.
On the negative side, shares of aerospace and defense firm
Cobham PLC tumbled 9.2%. Cobham said it is continuing to experience
delays and deferrals in the award of some U.S. defense and security
contracts.
"Given the uncertainty over growth in the fourth quarter, the
board recognizes that the group could make only limited underlying
progress in the full year," the firm said.
Also in the sector, shares of BAE Systems PLC fell 2.4%.
Late Tuesday, the London Stock Exchange said that human error
was to blame for a nearly two-hour trading disruption on the
Turquoise platform that took place yesterday morning.
Preliminary investigations indicate that this human error may
have occurred in suspicious circumstances and a full internal
investigation has now begun.