Stocks fell yesterday ahead of the Fed's policy decision. US data showed the economy added more jobs than expected in April, while the ISM prices paid index rose from 55.8 in March to 60.9 last month, fuelling concerns about inflation. Oil prices dropped sharply after data showed a rise in US crude inventories, which weighed on energy stocks in London. The FTSE 100 was down 0.3%.

The Federal Reserve's latest decision to maintain interest rates between 5.25% and 5.50% had a mixed impact on global markets. Fed Chair Jerome Powell indicated a more dovish stance than expected, calming fears of further rate hikes but also dampening hopes for a near-term rate cut. This led to varied reactions in the stock markets, with some indices like the Dow Jones gaining slightly, while the S&P 500 and Nasdaq experienced minor losses. In Europe, the market's response was cautious as investors digested a plethora of corporate earnings alongside macroeconomic indicators.

Today, the FTSE 100 bounced back on robust earnings from major companies like Shell, which announced a substantial $3.5 billion buyback, and Standard Chartered, which reported a 5.5% increase in first-quarter pretax profit, beating estimates. These strong performances helped the index stay close to its record high. Shell also posted a much better-than-expected $7.7 billion profit for the first quarter, thanks to strong oil trading and higher refining margins.

Melrose Industries, which maintained its profit growth outlook, was among the highlights. 

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