U.S. stock futures little changed as Fed meeting begins

by Editor

September 17, 2013 | 12:45 pm
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U.S. stock-index futures were little changed, indicating the Standard & Poor’s 500 Index will remain near a six-week high, as Federal Reserve policy makers prepared to begin a two-day policy meeting.

Ford Motor Co. dropped 0.7 percent in German trading after a report showed European car sales fell to a record low. Mosaic Co. sank 2.6 percent after North America’s second-largest fertilizer producer cut its quarterly forecast for potash and phosphate sales and prices.

Futures on the S&P 500 expiring in December slipped 0.1 percent to 1,689.4 at 6:51 a.m. in New York.

Contracts on the Dow Jones Industrial Average (INDU) declined 6 points, or less than 0.1 percent, to 15,425.

The Fed’s actions are “uncharted territory,” Kully Samra, who manages U.K. clients for Charles Schwab Corp., which has $2.1 trillion of assets globally, said on Bloomberg Television with Francine Lacqua Tuesday. “The good thing is that the economy and participants in the economy are in a much better place to deal with rising interest rates,” said Samra, who is based in London.

The Federal Open Market Committee will probably lower its $85 billion of monthly bond purchases by $10 billion, according to the median response of 34 economists in a Bloomberg News survey earlier this month. That’s down from the forecast of a $20 billion reduction in a July survey.

Syria Weapons

The S&P 500 climbed 0.6 percent to a six-week high yesterday after tensions over dealing with Syria’s chemical weapons eased and Lawrence Summers withdrew his bid to be Fed chairman. That removed Janet Yellen’s main competitor from the contest to take over from Ben S.

Bernanke in the central bank’s top job.

A Labour Department report at 8:30 a.m. in Washington may show consumer prices advanced 1.6 percent in August from a year earlier, slowing from 2 percent in July, according to a Bloomberg survey of economists.

Costs probably increased 0.2 percent month-on-month, matching July’s increase.

U.S. consumer-price gains have averaged 1.6 percent in 2013, falling from 2.1 percent in 2012. The figure was as high as 14.8 percent in 1980.

In Germany, Europe’s largest economy, investor confidence increased for a second month in September.

The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, rose to 49.6 from 42 in August.

Economists had forecast a reading of 45, according to the median of 37 estimates in a Bloomberg survey.


by Editor

September 17, 2013 | 12:45 pm
  |     |     |   Start Conversation

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