All the day’s economic and financial news, as world share prices touch new record levels

  • MSCI World Index hits new alltime peak
  • Investors upbeat ahead of Fed meeting on Wednesday
  • US central bank expected to hold interest rates
  • Coming up: Eurozone inflation & Mark Carney speech

Britain’s FTSE 100 is also clawing back some of last week’s losses (triggered by the stronger pound).

Having been battered in the wake of last week’s sterling super surge, the FTSE is using a quiet Monday morning to claw back some of its losses.

European stock markets have joined the rally, sending the Stoxx 600 index up to a six-week high.

Hussein Sayed, chief market strategist at FXTM, agrees that investors are focused on Wednesday’s Federal Reserve meeting.

Upbeat U.S. inflation data was not enough to move markets’ expectations of an interest rate hike in December. The odds for an interest rate hike by the end of year stands at 56%, according to CME’s FedWatch; whether this is about to change on Wednesday, relies on the Fed dot plot and Chair Janet Yellen’s speech.

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

World stock markets have hit a new alltime high this morning, as traders regain their appetite for risky assets.

Markets anticipate that the Fed will keep rates unchanged (with a December rate hike now seen as 50/50), but announce that it will commence balance sheet reduction at a pace of $10bn per month in Q4.

The statement will doubtless keep the option of a December rate hike clearly on the table, but markets will as ever hone in on the ‘dot plot’, with many expecting the likes of Brainard to perhaps adjust their trajectory lower

Short of shots being fired, these tensions are likely to have fairly short term and short lived effects, which helps explain the positive start to the week for Asia shares this morning which in turn is likely to lead to a positive start to this week’s European trading session.

The #Thailand SET 50 Index is up 1.3% today $THD pic.twitter.com/QBp3jitjF6

European opening call @LCGTrading $FTSE +29 points at 7244$DAX +77 points at 12595$CAC +27 points at 5240#EuroStoxx +15 points at 3530

Follow Monday’s #CamdessusLecture with @BankofEngland Governor Mark Carney and @Lagarde here: https://t.co/SREKlXVLr4 pic.twitter.com/gOAXtDeXTN

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