The Technical View: With a very modest RSI just above neutral 50 at 55, and poised to break a line of resistance from the middle of last month at 5,330 the FTSE 100 seems to be right on track for a year end rally. This is of course helped along by Abu Dhabi handing out $10bn to Dubai, a small price to pay for indices like the FTSE 100 to hit new highs for the year, something which should be forthcoming relatively easily once an end of day close above the November resistance line projection is delivered.

The good news (such as it is) is that the UK index managed to close above the lows of the session on Tuesday, at 5250 or so, although the overall impression remains that prices have gone fairly quiet ahead of this week’s Fed meeting – not that any change in monetary policy is expected, although the accompanying statement will probably be more closely scrutinised than ever for evidence of even the subtlest change of emphasis. The key levels for FTSE traders remain at 5190 and 5395 or so.

Peter Waller - Investment Director