Before the bell: What you need to know before the US market open

Billy Bambrough
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Markets Drop Heavily After Yellen Comments On Stock Valuations
Markets are closely watching the Fed today (Source: Getty)

Fed day is here chair Janet Yellen is unlikely to do anything that would surprise the markets. We'll have the decision at 7pm London time and then wait to hear from the lady herself at 7:30pm.

Here's what you need to know before the market open at 14:30 London time.

US futures are pointing up ahead of the open as they keenly await Yellen and the Fed. The S&P is up by 0.17 per cent, while the Nasdaq is 0.18 per cent higher. The Dow is up by 0.23 per cent. The US 10-year yield is up two basis points at 1.63 per cent.

European markets are tracking higher today, snapping their losing streak that sent the FTSE 100 below the 6,000 level for the first time in months. That follows a healthy trading session in Asia that left all major markets up.

European markets all post strong gains in early trading.

On Fed watch...

Markets currently see a zero per cent chance of a Federal Reserve interest-rate hike tonight.

Read more: Is it too late to normalise monetary policy?

May's underwhelming jobs report and the coming UK European Union referendum have been too much of a downer for the markets to have much appetite for a hike right now. July though could be on the table and traders will be paying careful attention to the Fed's statement and Yellen's press conference.

Jasper Lawler, CMC market analyst, said:

US stocks look set for a higher start on the final day of the FOMC meeting, though major averages remain well below where they started the weak as anxiety over the pace of future rate hikes remains.

Stocks to watch

Oil stocks are being closely followed ahead of the US stockpile numbers being released later.

Oil prices are currently slipping by about one per cent to trade around $48 per barrel.

Read more: At the close: £30bn wiped off FTSE 100 as Brexit fears mount

Boeing has reached a deal to sell passenger aircraft fto Iran.

The announcement was made by the Iranian minister of roads and urban development. Details on the agreement are expected in the next few days.

Companies reporting

Little in the way of US earnings again. Ctrip and Jabil Circuit post their latest numbers after the close.

In economic news

We've just had the latest industrial production and capacity utilization will shortly get crude-oil inventories in just under an hour.

After Yellen the net long-term TIC flows are due out late this evening.

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