Wednesday preview: Investors await FOMC policy meeting

The two-day Federal Open Market Committee meeting comes to an end on Wednesday evening and will likely to steal the spotlight with investors looking out for possible hints about the first rate hike.

Analysts generally don’t expect the Fed to tighten monetary policy at this month’s meeting in light of recent mixed data on the US economy.

The Fed meeting is a “huge event” according to Oanda analyst Craig Erlam.

“[The meeting] could offer great insight into whether the latest data has been enough to warrant a rate hike at the next meeting in September. Technically, this could come tomorrow but I think most people would be extremely surprised if this happened,” he said.

Meanwhile, analysts from Danske Bank said that the updated ‘dot plots’, which show policymakers’ predictions for the Federal funds rate, will be at the centre of attention. Previous projections were released on 18 March, but data since then has painted a cloudy picture.

“We believe that the mixed data have heightened FOMC members’ sense of uncertainty on the economic outlook and in response, we believe that a number of the dovish to centric members will have lowered their expected path for the Fed funds rate,” Danske Bank said.

“How many is key to the market interpretation of the likelihood of a September lift-off.”

Aside from the Fed meeting, data on Eurozone consumer price inflation, US crude stockpiles and the UK labour market will be released on Wednesday, along with the minutes of the latest Bank of England meeting.

Wednesday 17 June

INTERIM DIVIDEND PAYMENT DATE
Cambria Automobiles, Diploma

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Price Index (EU) (10:00)
Crude Oil Inventories (US) (15:30)
FOMC Interest Rate (US) (19:00)
Harmonised Index of Consumer Prices (EU) (10:00)
MBA Mortgage Applications (US) (12:00)
Wholesale Price Index (GER) (07:00)

FINALS
Berkeley Group Holdings (The), Betfair Group, Severfield

ANNUAL REPORT
Mckay Securities

AGMS
Albion Technology & General VCT, Corero Network Security, Cyprotex, Forum Energy, Futura Medical, IBIS Media VCT 1, International Consolidated Airlines Group SA (CDI), JD Sports Fashion, KBC Advanced Technologies, London Security, Maven Income & Growth 2 VCT, Nature Group, NB Global Floating Rate Income Fund Ltd GBP, NB Global Floating Rate Income Fund Ltd USD, OJSC OC Rosneft GDRS (Reg S), Phaunos Timber Fund Ltd., Pro Global Insurance Solutions , Walker Greenbank, Walker Greenbank

UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Minutes (09:30)
Claimant Count Rate (09:30)
Unemployment Rate (09:30)

FINAL DIVIDEND PAYMENT DATE
Marimedia (DI), Share plc, Toyota Motor Corp.