Somewhat predictably the markets began to flatten out on Wednesday afternoon, investors prepping for the evening’s Federal Reserve meeting.
The Dow Jones ended up opening unchanged at 25320, a price it hasn’t really been able to lift above in the last few sessions, likely because of the impending rate hike. Not that the dollar was looking particularly perky ahead of the Fed get-together; it could only take 0.1% off the pound and the yen, while it actually slipped 0.2% against the euro.
It’s going to be interesting to see how much investors react to whatever happens on Wednesday evening, given how well-signalled a rate hike has been. The response may well be down to the wording of the statement, i.e. how many more increases it suggests we are in for as the markets head into the second half of the year.
Elsewhere the European markets couldn’t muster up much worth talking about. The FTSE, which has flip-flopped all day, eventually returning to the familiar environs of 7700, a price that has become something of a magnet for the UK index. The eurozone indices were a bit brighter, but not by much, with the DAX and CAC rising 0.2% and 0.1% respectively.
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