Morning Markets: FTSE retreats after Fed rate move

The FTSE 100 opened more than 30 points lower Friday after the US Federal Reserve raised the rate it charges banks for emergency loans by a quarter percentage point to 0.75%.

London's blue-chip index recovered slightly and, shortly before 8.30am, was down almost 15 points, or 0.28%, to 5,310.33.

The Fed's move raised expectations an increase in its main policy rate could follow sooner than expected.

Miners retreated after a strong day Thursday following a hike in metal prices. Fresnillo, Anglo American, Kazakhmys and Xstrata were all approaching a 2% loss.

Home produce manufacturer Unilever advanced 15p, or 0.79%, to £19.11 while British American Tobacco climbed 0.67% to £21.84.

Asian shares were mostly lower Friday after the Fed move, with Japan's Nikkei 225 down 2.1% at 10,123.58 and Hong Kong's Hang Seng Index 2.6% lower.

In the US, where markets shut before the rate cut, a jump in regional manufacturing pushed the Dow Jones almost 84 points higher, or 0.81%, to 10,392.9. Its gains for the week now stand at nearly 300 points.