FTSE indexes set for monthly losses
Harbour Energy down on GS double downgrade
Fed decision due at 1900 GMT
FTSE 100 down 0.1, FTSE 250 off 0.2

Jan 31 Reuters The UK39;s bluechip index dipped on Wednesday, dragged by losses in Vodafone and GSK, while caution ahead of a Federal Reserve policy decision and weak China data weighed on the global mood.

The bluechip FTSE 100dipped 0.1, with Vodafone falling 3.9 after French telecom operator Iliad said its British peer rejected a sweetened proposal to merge their Italian businesses.

Shares of GSK were down 1.2 even as the drugmaker beat market estimates for fourthquarter results.

The midcap FTSE 250 shed 0.2, with Harbour Energy falling 3.7 after Goldman Sachs downgraded the oil and gas producer39;s shares to sell from buy.

Both the FTSE indexes are headed for their first monthly decline in three as investors scaled back bets of aggressive interest rate cuts from major central banks, with concerns about China39;s slowing economy adding to the gloom.

A survey showed China39;s manufacturing activity contracted for the fourth straight month in January.

The Fed is widely seen holding interest rates later in the day, with focus on Chair Jerome Powell39;s postmeeting press conference and any hints on how soon the Fed could begin easing rates.

The FOMC has a rather delicate balancing act on its hands, whereby it will want to make clear to markets that cuts are coming, albeit that a rate reduction as early as the March…