LONDON (ShareCast) - Following strong gains the day before, markets opened lower on Wednesday morning as investors paused for breath in anticipation of the Federal Reserve policy decision due out this evening.

"Despite the tranche of economic data due today, investors will probably be focused on Fed Chairman Ben Bernanke’s speech due later today where the markets will be looking out for any hint as to whether policy officials will be slowing down their bond purchase programme," said Financial Trader Shavaz Dhalla from Spreadex.

He said that markets have begun to price in the possibility that tapering stimulus "will occur sooner rather than later", but are still waiting for clarity on a timeframe.

"Investors are unlikely to just accept general statements regarding the effectiveness of the current stimulus measures. Thus, it’s possible that it may be a case of what Bernanke does not say which creates volatility as oppose to what is actually said," Dhalla said.

While the focus will remain on the Fed today, markets will also be on the look-out for minutes of the latest Bank of England meeting out this morning as well as Chancellor George Osborne's Mansion House Speech in which he is expected to reveal plans for re-privatising Lloyds and RBS.

Imagination Tech slumps as annual profits fall

Processor technology group Imagination Technologies was a heavy faller this morning after its annual results. Full-year revenues grew by a fifth after a better-than-expected increase in unit shipments, but profits more than halved after a jump in opex and continuing struggles at its loss-making radio division, Pure.

House building company Berkeley Group meanwhile impressed after reporting a 26% hike in annual pre-tax profit and issued a further interim dividend following strong demand in London and the South of England.

Software products group Micro Focus International was also in demand after its annual results, as it reported a 5.1% gain in pre-tax profit as it kept a tight rein on costs.

Real estate group Land Securities was lower after going ex-dividend, along with Electrocomponents, Severn Trent and United Utilities.

Lancashire was a heavy faller after JPMorgan Cazenove downgraded the stock to 'neutral' and cut its target price from 860p to 800p.

FTSE 100 - Risers
Rio Tinto (RIO) 2,857.50p +1.65%
Eurasian Natural Resources Corp. (ENRC) 231.20p +0.70%
Fresnillo (FRES) 1,078.00p +0.47%
Wolseley (WOS) 3,143.00p +0.38%
Antofagasta (ANTO) 881.50p +0.28%
SABMiller (SAB) 3,251.00p +0.25%
Sage Group (SGE) 333.70p +0.15%
BHP Billiton (BLT) 1,823.00p +0.14%
National Grid (NG.) 755.50p +0.13%
Polymetal International (POLY) 638.50p +0.08%

FTSE 100 - Fallers
United Utilities Group (UU.) 699.00p -3.79%
Severn Trent (SVT) 1,705.00p -3.40%
Aggreko (AGK) 1,700.00p -2.97%
Experian (EXPN) 1,151.00p -2.04%
Standard Life (SL.) 368.70p -1.73%
London Stock Exchange Group (LSE) 1,368.00p -1.72%
Land Securities Group (LAND) 890.50p -1.71%
Schroders (SDR) 2,174.00p -1.63%
Tate & Lyle (TATE) 821.50p -1.62%
IMI (IMI) 1,275.00p -1.54%

FTSE 250 - Risers
Micro Focus International (MCRO) 692.00p +6.96%
Berkeley Group Holdings (The) (BKG) 2,252.00p +4.31%
New World Resources A Shares (NWR) 94.70p +3.55%
SDL (SDL) 278.90p +2.92%
Thomas Cook Group (TCG) 128.50p +1.98%
Diploma (DPLM) 569.50p +1.70%
Spirent Communications (SPT) 132.30p +1.46%
COLT Group SA (COLT) 105.40p +1.35%
KCOM Group (KCOM) 87.00p +1.16%
Home Retail Group (HOME) 131.30p +1.08%

FTSE 250 - Fallers
Lancashire Holdings (LRE) 740.00p -5.43%
Imagination Technologies Group (IMG) 290.80p -4.72%
Electrocomponents (ECM) 247.30p -3.44%
Telecity Group (TCY) 965.00p -3.40%
IP Group (IPO) 135.00p -2.88%
Restaurant Group (RTN) 497.80p -2.68%
Chemring Group (CHG) 259.50p -2.66%
3i Group (III) 327.00p -2.53%
Invensys (ISYS) 401.10p -2.36%
3i Infrastructure (3IN) 133.00p -2.21%

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