Investors look for a flock of doves in tonight's decision

Traders remain in a nonchalant mood ahead of tonight's decision, expecting a dovish commentary around the widely-trailed cut, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Stocks mixed but calm ahead of Fed decision

Markets aren’t reflecting much nervousness as they await tonight’s Fed decision, as volatility drops again and the Dow reclaims 46,000 in early trading. Equity markets continue to thumb their nose at traditional September weakness, at least on Wall Street, but the Dax has shown some signs of life after plunging to a four-month low yesterday.

Dot plot and statement to dominate

Tonight’s cut isn’t going to be the real story. Investors want to know whether Powell will hint at more cuts to come; given labour market weakness that seems to be the most likely outcome. A ‘hawkish’ cut, implying that no more reductions are likely soon seems to be a distant prospect, something investors can take comfort from as they watch Wall Street hover near record highs.