Global markets were fairly subdued overnight as traders and investors collectively held their breath ahead of the Fed decision.
In Europe, a German court cleared the way for that country to participate in a European rescue fund.
Germany’s highest court ruled that the country could contribute to Europe’s 640 billion dollar rescue fund to help indebted governments. The ruling offered investors relief, but not much more.
In London the FTSE 100 shed 10 points (-0.2%) to settle at 5782, whilst the French CAC (+0.2%) and German DAX (+0.5%) enjoyed a better performance.
Stateside, the Dow added just 10 points (+0.1%) to settle at 13333, whilst the S&P 500 (+0.2%) and tech-heavy NASDAQ (+0.3%) were slightly stronger.
When the US central bank concludes its meeting, investors and economists expect it to announce new steps to stimulate economic growth, especially after a Labour Department report last week showed employers added fewer than 100,000 jobs last month.
Many expect that the Fed will commit to buying more bonds and extend its pledge to keep short-term interest rates near zero until 2015. The Fed previously offered to keep them there until late 2014.
The euro rose to its highest level in four months against the dollar after a German court cleared the way for ratification of Europe’s permanent bailout fund, boosting demand for the shared currency.
Oil in New York declined for the first time in six days after an Energy Department report showed an unexpected increase in US crude inventories.
Crude oil for October delivery declined 16 cents to settle at $97.01 a barrel on the NYMEX. Prices are down 1.8% this year.
Today’s session will bring us data in the form of Melbourne Institute inflation expectations, at 11am AEST, and the latest RBA Bulletin, at 11:30am AEST.