Talk of tapering is back on the table
and US investors are again bracing for a pullback of the Federal Reserve’s
monetary stimulus.
Declining equities in Asia and Europe
appear ready to spill over to the US. US stock market futures slipped ahead of
the opening bell in New York, with the Dow Jones Industrial Average off 0.21
per cent to 15750.67 and the S&P 500 down 0.24 per cent to 1767.69.
Discussion of when the US central bank
would begin to taper its quantitative easing programme quietened down following
last month’s government shutdown, but comments from Fed officials on Tuesday
sparked speculation that bond-buying could still slow before the end of the
year.
Investors are expected to be cautious
on Wednesday ahead of Janet Yellen’s confirmation hearing on Thursday. Ms
Yellen, who President Barack Obama has tapped to be the next Fed chairman, will
have the stage to offer her views on where the central bank’s monetary policy
should go from here.
Wednesday’s economic calendar is
otherwise light, with the monthly Federal budget statement this afternoon being
the only highlight.
On the corporate side, Macy’s is set to
release its earnings before the market opens.
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