Markets hesitate as Fed deliberates

Markets hesitate as Fed deliberates

Mike van Dulken, head of Research at Accendo Markets commented to clients this afternoon:

“Equities are mixed, hovering around break even. This is not unusual as the US Federal Reserve begins its latest two-day monetary policy meeting. After all, investors from all asset classes are preparing to hear – tomorrow evening – more about the unwinding of its QE-bloated balance sheet (imminent?) and the timing of its next rate hike (Dec?). The UK FTSE 100 is pushing higher thanks to a weaker GBP and positive contributions from  HSBC (Asian calm), RDSb & BP (higher oil price), BLT (copper resilience, higher oil) and IAG (peers benefiting from RYA woes, GS sector update). This is offsetting a drag from BATS (new US regs, defensives being shunned) and BT (profit taking, defensives being shunned). The German DAX is in the red as gains for Deutsche Lufthansa (RYA woes, GS sector update), Deutsche Post, Deutsche Boerse (end of CEO probe in sight?) and Fresenius Medical are undone by weakness for RWE (Exane downgrade), Adidas (strong EUR) and Linde (Norway supports merger with Praxair). The FTSE 100 has extended its bounce to test Friday’s breakdown at 7280. The DAX 30 remains around the 12530 floor of a shallow rising channel. Dow Jones Futures have plateaued around 22350, with some bearish signals. Gold has found support at $1305 but could be forming a bearish flag lower.”

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