What you need to know before the open – 18/12
Today is the day the Fed's Open Market Committee makes a decision on whether to trim back its quantitative easing programme. The tapering debate has rattled on for almost eight months now, with uncertainty persistently subduing the markets.
Robust economic data has left many questioning the likelihood of a December (as opposed to a March taper). Current consensus is that a taper is not priced in, and we're looking at March, but that doesn't rule out a surprise decision from the Fed later today.
Markets are expected to open up today. FTSE 100 futures were trading 17.5 points up at 7.00am this morning.
ETX Capital #morningcall: FTSE100 up 23 points, the DAX higher by 32 points and the CAC40 up by 11 points
— ETX Capital (@ETXCapital) December 18, 2013
Another dire neutral start to equity session in London – FTSE up 7 points – DAX +22 and CAC +9
— David Buik (@truemagic68) December 18, 2013
Over in Asia, the Nikkei 225 closed two per cent higher on widespread talk that Japan's central bank will increase its monetary stimulus programme soon.
Key events:
- German IFO business climate and expectations for December at 9.00am.
- UK Bank of England minutes at 9.30am.
- UK ILO unemployment rate for the three months to October at 9.30am.
- UK CBI distributive trades survey for December.
- UK MBA mortgage applications (13 December) at 12.00pm.
- US housing starts for October and November at 1.30pm. November expected at 950,000 from 891,000.
- US Fed interest rate decision and pace of MBS purchase programme at 7.00pm.