FTSE Spread Betting Market Set to Fall if Bernanke Fails to Add Stimulus
Mid-morning trading sees the FTSE practically unchanged from its opening level, as caution grips global markets.
Today sees the finale in the series of major events that have dominated over the past two weeks.
The Fed will announce its latest policy decision, with many still expecting a burst of stimulus from Ben Bernanke.
What we are likely to see is an extension to the period of ultra-low interest rates, but we will need to see something fairly impressive if the Fed is to avoid creating a wave of disappointment.
The trend from the important announcements of late, be they from the ECB, a German court or Ben Bernanke, has been broadly positive. Today’s Fed meeting could help to round off what has been a reasonable late summer for markets.
The immediate reaction from markets has been somewhat negative, with both firms down around 6%.
There are plenty of obstacles that need to be overcome, so we shouldn’t expect too much in the immediate future from this deal.
Looking ahead to the US open, we have initial jobless claims and PPI data ahead of the Fed decision at 5.30pm and then the press conference at 7.15pm (London time).
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Financial Market Comments from Chris Beauchamp, Market Analyst, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
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