- US equity futures rose as traders awaited the Federal Reserve's interest rate decision, which will be scrutinised more for the policy outlook than for the widely expected pause in hikes.
- Both the S&P 500 and the Nasdaq 100 contract added about 0.2%.
- After unexpectedly slowing British inflation, stocks in Europe rose and the pound fell. Sterling fell 0.5% against the dollar, reaching its lowest level since May, on speculation that the Bank of England is nearing the end of its rate hike cycle. UK bonds soared.
- In August, the UK Consumer Prices Index rose 6.7% year on year, the slowest rate in 18 months and less than the 7% expected by economists. According to swap pricing, the probability of a quarter-point rate increase by the BoE at its meeting on Thursday, which was almost certain earlier this week, has dropped to less than 50%.
- Goldman Sachs: The BoE is likely to hold rates tomorrow.
