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Markets soft ahead of today’s conclusion of the two day Fed meeting

Markets were soft ahead of today’s conclusion of the two day Fed meeting. There is little expectations of any change in monetary policy albeit all will scrutinize the post meeting statement to see how the Committee views Chinese economic developments and how the drop in commodity prices is influencing the emerging markets/economies.
As widely discussed, at the conclusion of the September meeting, the FOMC introduced a new variable into the monetary mix, a variable forcing all to become emerging market scholars/analysts.
What will happen today? Will the markets mark time until the 2:00 PM statement? Probably unless there is a major earnings surprise. Speaking of which, profits have generally exceeded estimates albeit expectations were low.
Last night the foreign markets were mixed. London was up 0.37%, Paris up 0.34% and Frankfurt up 0.66%. China was down 1.72%, Japan up 0.67% and Hang Sang down 0.80%.
The Dow should open nominally higher ahead of the outcome of the Fed meeting and generally stronger than expected profit reports. The 10-year is unchanged at 2.04%.

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Ken Engelke

Chief Economic Strategist Managing Director

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