Market update: Markets tread cautiously ahead of today’s FOMC events – 19.06.2013

Source: Henderson Global Investors

The main US benchmarks ended Tuesday higher (Dow Jones +0.9% and S&P 500 +0.8%) as investors preferred to sit on the sidelines in anticipation of today’s Federal Open Market Committee (FOMC) meeting. In an interview with Bloomberg President Barack Obama said that the Federal Reserve chairman has already “stayed on” longer than he (Bernanke) had originally wanted. This led to some market speculation as to whether he will opt for a third term at the central bank.

Overnight in Asia, Japanese stocks advanced helped by strong export data, which increased the most in three years. Chinese shares, however, came under pressure on reports that the government could impose further property curbs. This morning, European equity markets are treading cautiously (FTSE 100 just above 0.0% and FTSE Eurofirst 300 up 0.2% at the time of writing). Investors are securing their positions ahead of the FOMC events as well as the release of the minutes of the last Bank of England Monetary Policy Committee meeting for details on the UK’s quantitative easing (QE) programme. However, despite the tranche of economic data out today, all eyes will be glued to Ben Bernanke’s press conference.