European stock markets were muted on Wednesday morning, ahead of the latest policy statement from the US Federal Reserve later today.
^FTSE) was down 0.3%, the DAX (^GDAXI) was up 0.1% and the CAC 40 (^FCHI) was flat. The Euronext 100 (^N100) was up just 0.1%.” data-reactid=”24″>Shortly after the open, the FTSE 100 (^FTSE) was down 0.3%, the DAX (^GDAXI) was up 0.1% and the CAC 40 (^FCHI) was flat. The Euronext 100 (^N100) was up just 0.1%.
inflation slipped to just 0.2% in August as a government meal subsidy scheme pushed down prices.” data-reactid=”25″>In the UK, data showed inflation slipped to just 0.2% in August as a government meal subsidy scheme pushed down prices.
UK inflation falls sharply as Eat Out to Help Out cuts average prices” data-reactid=”26″>READ MORE: UK inflation falls sharply as Eat Out to Help Out cuts average prices
However, investor attention was largely focused on the US Fed, which began its two-day policy meeting on Tuesday and will make a policy statement at 7pm UK time.
Jim Reid, a senior strategist at Deutsche Bank, said the statement would be “the highlight of the day for investors”.
“No changes in policy are expected at today’s Fed meeting, with the recent speech by Fed chair Jerome Powell at the Jackson Hole virtual symposium still fresh in the memory,” said Michael Hewson, chief market analyst at CMC Markets.
“His comments that the Fed was now looking at implementing a new policy of AIT or ‘average inflation targeting’. This means that central bank policymakers would be prepared to tolerate prices rising above 2% for periods of time to compensate for other periods of time when inflation is running below target.
“This raises a number of key questions, firstly in how you determine the average benchmark, given the Fed has struggled to get anywhere near its existing 2% target for most of the last 20 years now.”
FOMC Preview: Lack of fiscal stimulus casts shadow over Fed” data-reactid=”36″>READ MORE: FOMC Preview: Lack of fiscal stimulus casts shadow over Fed
ES=F) and Dow Jones futures (YM=F) were up 0.1%, while Nasdaq futures (NQ=F) were trading 0.2% higher.” data-reactid=”37″>Wall Street futures were pointing higher. S&P 500 futures (ES=F) and Dow Jones futures (YM=F) were up 0.1%, while Nasdaq futures (NQ=F) were trading 0.2% higher.
Before the Fed statement, investors will have a chance to digest the August US retail sales report, which is due at 1.30pm UK time.
000001.SS) dropped 0.4%, the Shenzhen Component (399001.SZ) fell 1.1%, and the Hong Kong Hang Seng index (^HSI) was flat. Japan’s Nikkei (^N225) was flat and the Korean KOSPI (^KOSPI) dropped 0.3%.” data-reactid=”39″>Asian stocks mostly fell overnight. The Shanghai Composite (000001.SS) dropped 0.4%, the Shenzhen Component (399001.SZ) fell 1.1%, and the Hong Kong Hang Seng index (^HSI) was flat. Japan’s Nikkei (^N225) was flat and the Korean KOSPI (^KOSPI) dropped 0.3%.
Read More: European stock markets quiet ahead of US Fed meeting