FTSE in the red ahead of US stimulus talks

London's blue chip index remained in the red mid-afternoon despite gains in the US, with investors cautious ahead of the all-important meeting of the Fed in the US.

The FTSE 100 was down 0.6% at 5,333.06 just after the US opened, with miners and other cyclicals weighing heaviest.

Antofagasta and Xstrata were amongst the biggest losers in the index, falling 4.4% and 2.8% respectively reflecting falls in commodity prices. Commodities trader Glencore was also among the bottom five performers, losing 3.7%.

In Europe, markets also suffered with the DJ Eurostoxx 50 shedding 0.75% to move to 2,124.37.

Although further economic stimulus is likely to be announced at the end of the Federal Reserve's two-day meeting, it may not have much impact on markets.

Commentators told Reuters any announcement was unlikely to boost shares as markets are already pricing in some form of stimulus.

Economists expect the Fed to announce a programme which will see it sell short-dated assets and buy back long-dated assets.

US markets were buoyed by the prospect of loosened monetary policy with the S&P 500 gaining 0.19% to move to 1,204.42, and the Dow Jones increasing by 0.07% to 11,408.66.