FTSE 100 drops ahead of Fed's decision

FTSE 100 Index, British benchmark stock market gauge, Thursday dropped by 0.68 percent, or 42.22 points, to 6186.99, as the market stayed cautious prior to the U.S. Federal Reserve's decision later today.

The Federal Open Market Committee (FOMC) of the Fed on Thursday will announce whether it will raise rates for the first time in almost a decade following a two-day policy meeting. Some analysts expect a 25 basis points interest rate raise.

Most sectors of the London market closed lower Thursday, with industrial engineering, oil equipment, services & distribution and retail estate investments & services sectors leading the pack.

Smiths Group's share price slumped by 4.07 percent and topped the losers of the blue chips.

Share prices of Sainsbury, Fresnillo, Hargreaves Lansdown and Antofagasta declined by 2.55 percent, 2.47 percent, 2.43 percent and 2.40 percent respectively.

Compass Group led the top gainers of the blue chips with a share price increase of 1.87 percent, followed by Associated British Foods (1.63 percent), GKN (1.42 percent), London Stock Exchange Group (1.36 percent) and International Consolidated Airlines Group (1.09 percent).

The trading volume in FTSE 100 companies was around 9 percent greater than its 30-day average. The index has lost 2.68 percent so far this year.

The broader FTSE All-Share Index lost 0.56 percent. Endit