What to expect from this week's FOMC meeting

What to expect from this week's FOMC meeting

"If there is no clear victor on Monday - a highly likely scenario - negotiations between coalition partners will continue for the following two weeks, and add to NZD volatility", said the Commonwealth Bank of Australia in a note.

In other words, inflation is signaling that the Fed should not increase rates.

Brent crude futures rose $1.15, or 2.1 percent, to settle at $56.29 a barrel, while US crude futures gained 93 cents, or 1.9 percent, to settle at $50.41.

Adobe fell 4.5% after the Photoshop maker's revenue forecast came in-line with estimates.

Pfizer PFE.N was up more than 1 percent after Morgan Stanley upgraded stock to "overweight".

The U.S. currency inched 0.1 percent lower against its Japanese counterpart to 111.45 yen, but remained within sight of an eight-week peak of 111.88 yen scaled overnight. The Dow Jones industrials added 41 points, or 0.2 percent, to 22,412.

General Mills was down about 6 percent after its quarterly profit missed estimates, hurt by lower sales of its yogurts and cereals in North America.

Yields on U.S. 10-year Treasuries jumped a hefty 14 basis points last week, but still trailed the United Kingdom where yields on 10-year paper surged 30 basis points.

Politics of polarisation needs to be eradicated from India: Rahul targets Centre
The Gandhi scion said that 30,000 youth were entering the job market everyday in India but only 450 jobs were being created. Gandhi alleged that some sections of society, including tribal community, does not feel a part of the BJP's vision.

"Movements are small as investors are anxious ahead of the Fed, with focus is firmly on the dot chart", showing US central bankers' expectations about future interest rates, said Ayako Sera, senior market economist at Sumitomo Mitsui Trust in Tokyo.

Bond prices move inversely to yields. Bank loans to businesses, which grew by an average of about 10 percent year-over-year for the past five years, have leveled out this year.

The ultra-loose monetary policy - which began as a calculated response to the shock of the global financial crisis in 2008 - has helped suppress bond yields and boost equity prices to record highs.

The market is already struggling with a scarcity of benchmark 10-year notes, which can be hard to borrow due to the U.S. Treasury Department's auction schedule. In its trading update for the period from 1 April 2017, the company said it is trading in line with its expectations and the outlook for the year is unchanged.

U.S. stocks and the dollar were steady on Wednesday with investors cautious ahead of a U.S. Federal Reserve statement that may give clues on whether the central bank will raise interest rates for a third time this year. Chesapeake Energy added 17 cents, or 4.1 percent, to $4.21, while Marathon Oil rose 46 cents, or 3.8 percent, to $12.46. Technology stocks were down the most.

Bed Bath & Beyond BBBY.O sank more than 13 percent after the home furnishing retailer reported earnings and sales below estimates, prompting a slew of price target cuts. Fed policymakers have for months downplayed stubbornly low inflation as the result of temporary factors, but core CPI has not risen above 2.3 percent in six years.

Traders were betting on a 55.8 percent chance of a December hike, compared with 37.3 percent a month ago, according to the CME Group's FedWatch tool.

Asian shares hit decade highs on Monday and the dollar held firm early in a week in which the US Federal Reserve is likely to wrestle with its bloated balance sheet as part of a long reversal of super-cheap money worldwide. Brent crude, used to price worldwide oils, gained 24 cents to $55.38 per barrel in London.

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