It was all quiet on the Western and Eastern front with markets across Europe and Asia barely moving on Wednesday,” says Russ Mould, investment director at AJ Bell.
“Investors were waiting patiently for the Federal Reserve’s latest meeting, which is expected to see the central bank upgrade its forecasts for the US economy.
“The Fed seems content to keep monetary policy ultra-loose in its attempts to let the economy run hot as it recovers from the effects of the pandemic. Fixed-income markets have become a little more nervous, but equity markets seem happy about it so far.
“Markets will therefore want to know what any upgrades to US economic expectations mean for monetary policy and when interest rates might go up. Policy changes aren’t expected at this meeting, but the Fed’s comments will be closely watched for any clues as to what it might do over the next two years.
“The FTSE 100 dipped 0.3% to 6,784. BT was the top riser after its mobile and internet service provider EE won a new 5G spectrum in an auction. That will help BT to grow its position as the UK’s market leading 5G network.”