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Wednesday, 28 January 2009

28/01/09 news review

The UK blue chip index closed 14.60 points, or 0.4 percent lower on Tuesday at 4,194.41 weighed down by weaker commodity issues, giving back some of Monday's 3.9 percent advance which had been led by a recovery in banks.

The focus on Wednesday will be on the outcome of a U.S. Federal Reserve meeting. The central bank has already slashed interest rates to nearly zero and is looking for other tools to revive economic growth.

The British government's forecast for a strong rebound in economic growth next year is optimistic and preparations must be made for the "worst case scenario", a group of lawmakers said.


* Wall Street rises as AmEx, other results reassure
* Nikkei led higher by tech shares, hopes for US policy
* Dollar edges up vs yen, slips vs euro before Fed
* Oil bounces above $42 after plunge on demand fears
* Gold holds near 3-month high, ETF at record

UK stock to watch on Wednesday are:

RIO TINTO
The global miner, facing persistent rumours it might need to sell shares to help pay off $39 billion in debt, has conceded that an equity raising was one option being considered.

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