The major event of the day in the financial world is the US Federal Reserve policy meeting.
Fed Chair Janet Yellen is expected to announce an end to its latest stimulus programme.
Over the last two years, the US central bank has been buying billions of dollars worth of government bonds and mortgage backed bonds each month to pump money into the economy.
The financial markets believe the Fed policymakers will also re-state they are in no rush to raise interest rates, currently near zero.
They need to keep the cost of borrowing ultra-low as weak global growth is impacting the US economy.
The bond-buying has been a controversial crisis response by the Fed.
Officials argue it helped hold down long-term interest rates, keeping borrowing costs cheaper for companies and households. Others maintain it did little more than push up share prices on Wall Street and beyond.
The end of the purchases still leaves the Fed far from a normal posture. Its balance sheet has ballooned to more than $4 trillion (3.14 trilliion euros), interest rates remain at zero, and, if anything, recent events have increased the risk the Fed may need to keep propping up the US economy for longer than had been expected just a few weeks ago.
Officials do not plan to allow the Fed’s balance sheet to decline until after interest rates begin to rise.
with Reuters
