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The Federal Reserve is trying to keep investors in the dark as to what its next move will be. The decision to keep the bond-buying programme unaltered at $85 billion per month pushed equities higher, but speculation is mounting about what the next meeting will bring. As always, the Fed members are divided: James Bullard is hinting at tapering, while William Dudley isn’t convinced the US economy is strong enough yet.
Just as the Fed is looking to ease up on its stimulus package, the European Central Bank stated it is on standby to pump cash into the banking system if required. Traders are becoming too dependent on stimulus packages, but they can provide a boost to equities in the short term.
Mineral extractors have lost the most ground today, due to softer commodity prices. Meanwhile, European equity traders are sitting on their hands while Angela Merkel puts together a new coalition government.
In the US, we are expecting the Dow to open ten points lower at 15,391, as dealers look ahead to Kansas Fed president Esther George's announcement this afternoon.