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* FTSE 100 up 0.3 pct
* Miners drop ahead of Fed rate decision
* Standard Life falls after downgrade
By Kit Rees
LONDON, Dec 13 Britain's top share index rose on
Tuesday, though gains were capped as commodities-related stocks
stumbled ahead of the U.S. Federal Reserve's meeting.
The blue chip FTSE 100 index was up 0.3 percent at
6,907.53 points by 0951 GMT, mirroring gains in the broader
While the rally was broad-based, with ITV,
International Consolidated Airlines and Burberry
among top risers, miners were the biggest fallers.
Shares in Randgold Resources and Fresnillo
dropped 1.9 percent and 2.5 percent respectively as the price of
gold slipped ahead of the U.S. Federal Reserve's interest rate
decision on Wednesday. Investors are expecting a hike in
interest rates for the first time in 2016.
Likewise a drop in the price of copper hit shares in
Antofagasta, Rio Tinto, BHP Billiton
and Glencore, which fell between 1.7 to 2.8 percent.
Commodities prices tend to come under pressure when real
interest rates rise as investors put capital into
"It is pretty much priced in by the market the we will see a
hike in (U.S.) rates. This is likely to cause relative strength
in the dollar and that is quite negative for commodities,"
Jonathan Roy, advisory investment manager at Charles Hanover
"They've had quite a strong run, the miners of late, so if
we see a strengthening dollar and a weakening commodity price in
the face of a rate hike, that's going to be slightly negative
for the miners in the short-term."
Insurer Standard Life was also among the top fallers,
down 1.4 percent after Deutsche Bank cuts its rating on the
stock to "hold" from "buy", citing concerns about margin
pressure and GARS outflows.
Among the mid caps, cyber security firm NCC Group
fell more than 7 percent after the firm cut its 2017 EBITDA
forecast, with analysts at Jefferies pointing to project
cancellations as impacting profitability.
"These were substantial, high-margin projects that were also
expected to yield considerable additional workloads for NCC
during the course of the year. Hence, the pain inflicted by the
cancellations, all for unrelated reasons, is disproportionately
high," analysts at Jefferies said in a note.
(Reporting by Kit Rees; Editing by Angus MacSwan)