What you need to know before the US open
US markets are expected to open lower today. European counterparts have headed higher, but investors will be looking towards comment from Fed chair Janet Yellen tomorrow, as the bank puts forward its latest monetary policy decision. It’s expected to continue with its tapering programme.
There are also have the latest inflation figures to digest. US inflation fell to 1.1 per cent in February from 1.6 per cent. Expectations are that March will see a rebound, because the drop was due solely to base effects, and that it won’t affect the Fed’s decision tomorrow. Core inflation stayed at 1.6 per cent.
Meanwhile, housing starts in the US remained subdued in February, impacted by the severe weather the country's been seeing. Volumes ticked down 0.2 per cent month-on-month to 907,000.
European markets have been gaining on Vladimir Putin announcement to the Russian parliament that he doesn’t want to see any further divisions to Ukraine, backing Crimea’s application to join Russia. Moscow's Micex has gained over two per cent.
Corporate news
ISS – one of the US government’s largest influential advisers – has been acquired by Vestar Capital Partners, a private equity firm, for $364m cash.
Apple’s announced it’s retiring the iPad 2 in favour of a Retina display model with better specifications.
And Viacom and Google have ended their enduring copyright battle, agreeing a settlement.
Data in focus
• 1.00pm: US Jan TIC flows
• 5.45pm: BoE Carney speech