Overview
The market will be dictated by the Federal Reserve’s interest rate decision, due later today. Expectations are rife that Fed chair Janet Yellen will discuss the timing of the reduction in the central bank’s balance sheet. While interest rates are more than likely going to be left unchanged, there is a change of a rate hike in December, residing at about a 50% probability.
As the countdown to the Fed’s meeting begins, stocks are mixed, despite the record high the Dow Jones reached on Tuesday. Germany’s Dax 30, Europe’s proxy, lost 0.25% while France’s CAC 40 added 0.1%.
Asia-pacific stocks are mostly lower, with the Nifty 50 shedding 0.09 and Australia’s SPI 200 is losing 0.4%.
US stocks are beginning to pick-up momentum. The S&P 500 added 0.06% to its value while the Nasdaq climbed 0.04% and the Dow Jones is 0.07% higher.
Forex
The dollar index, which measures the greenback against a basket of major currency pairs, dipped 0.1% lower in the run-up to today’s policy decision.
Safe-haven currencies are on the rise after US president Donald Trump delivered a threatening warning to North Korea. The Japanese yen rose 0.2% against the greenback while the Swiss franc climbed 0.1 against the dollar.
The pound increased 0.5% against the dollar as retail sales jump to 1% from 0.06% in August.
Commodities
Gold added 0.37% to its value, rebounding from the two-week low the precious metal hit on Monday. The safe-haven metal advanced after Donald Trump’s address to the United Nations general assembly, which the president urged North Korea to be cautious adding that the nation’s leader is “on a suicide mission for himself and for his regime’’
Oil prices rose ahead of today’s US crude oil inventory report. According to forecasts, stockpiles will increase by 2.8M. Therefore, caution should prevail.
Crude oil has climbed 0.4%, while Brent oil, the international benchmark, has inched up 0.43%.
Coming Up: (GMT+1)
USD Crude Oil Inventories: 15:30
USD Federal Funds Rate: 19:00
USD FOMC Press Conference: 19:30
NZD GDP q/q: 22:45