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US pre-open: Futures point to early losses ahead of Fed decision

By Iain Gilbert

Date: Wednesday 18 Sep 2019

US pre-open: Futures point to early losses ahead of Fed decision

(Sharecast News) - US futures had stocks opening slightly lower on Wednesday as investors awaited a rate decision from the US Federal Reserve later in the session.
As of 1200 BST, Dow futures were down 0.09%, while S&P 500 and Nasdaq futures had the indices opening 0.11% and 0.14% lower, respectively.

The Dow Jones closed 33.98 points higher on Tuesday as crude oil futures skidded lower following news that Saudi oil output could be fully restored quicker than had originally been anticipated following an attack on an oilfield and the country's key processing facility, which sparked fears that a surge in crude prices could add to the slowdown in the global economy.

Focus for the session will be all but locked on the Federal Reserve, which Donald Trump recently branded as "boneheads" when he demanded the bank set zero or negative rates.

However, despite the recent fluctuations in energy prices, the Fed was expected to cut rates by 25 basis points on Wednesday, marking just the second rate cut made by the central bank this decade after it opted to lower the Fed Fund Rate to 2.0-2.25% in July.

Chairman Jerome Powell will speak to the press at 1930 BST.

Oanda analyst Craig Erlam said: "While the interest rate probability tools have become a little erratic in recent days, there seems to be little question that the Fed is going to cut interest rates again today.

"The real question is whether they will stick to the mid-cycle adjustment message and refuse to explicitly signal more cuts or give up the fight and acknowledge that an easing cycle is underway."

Elsewhere on the data front, mortgage application figures will be posted shortly, followed by building permit figures for August at 1230 BST.

In corporate news, General Mills will post its latest set of results on Wednesday.

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