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The FTSE was flat in early trading this morning following digestion of last night’s US Fed monetary policy update, which simply delivered on what had been suggested.

Spreadex analyst, Connor Campbell noted “As predicted the Federal Reserve announced on Wednesday that it would begin to reduce its eye-wateringly large balance sheet in October, confirming a shift in policy – i.e. the end of QE – that had been previously hinted at in the last few meetings.”

“And though interest rates were, again as expected, kept unchanged, the central bank did leave a December rate on the table.”

The hint of a December interest rate rise has helped to lift the dollar this morning, with the currency taking more than a cent off the Euro to send it back under $1.19. Connor Campbell added “The greenback’s gains were less robust against the pound, though cable has been forced below $1.35”

Over in the US, equity markets closed mixed on Wednesday after the Fed’s monetary policy update. Accendo Markets analyst, Mike van Dulken noted “the Nasdaq retreating from record highs while the Dow Jones and S&P 500 continued their recent impressive run of form.”

“The Dow outperformed once again as Boeing extended its run of record highs, while the Industrial and Material sectors lifted the S&P higher and the Nasdaq finished lower as Apple and Microsoft both closed weaker.”

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Michael Morton

Michael Morton

Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.

With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life. His broker of choice is Hargreaves Lansdown.


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