- As investors anticipated the Federal Reserve's interest-rate decision and braced for any cautions from Chair Jerome Powell that market expectations of policy easing are exaggerated, stocks registered modest moves in cautious trading.
- S&P 500 and Nasdaq 100 futures indicated modest gains on Wall Street, while Europe's STOXX 600 index nudged higher. Tesla decreased 1.4% in premarket after recalling more than 2 mln vehicles to address autopilot safety issues.
- The dollar and Treasuries nudged higher as the pound dropped and UK bonds surged after statistics revealed the economy contracted more than expected in October, results that led traders to increase bets on interest rate cuts by the BoE the next year.
- The S&P 500 closed at the highest since January 2022 on Tuesday, while Treasury yields have tumbled on speculation the Fed will cut its benchmark rate by more than a full percentage point next year. Markets have slightly trimmed their bets on that easing, which is still projected to start in May.
- Goldman Sachs cuts the UK's 2023 GDP growth forecast to 0.5% vs 0.6% previously, as well as cutting the 2024 forecast to 0.6% from 0.7%.
