EUROPEAN MIDDAY BRIEFING FROM DOW JONES NEWSWIRES
AMERICAN MARKETS OUTLOOK: Futures indicate a higher open Wednesday, supported by positive trading in Europe ahead of the FOMC rate decision, said David Jones, Chief Market Strategist at IG Index in London.
"The Federal Reserve will likely leave short-term interest rates alone, so it's not so much what the decision is but what the Fed says around that. The big question is whether they can offer us a glimmer of hope," Jones said.
Investors will also be looking at the MBA Mortgage Application Survey, durable goods data, new home sales and U.S. oil inventories.
In earnings news, Blackberry maker Research in Motion reports fiscal first-quarter 2009 earnings. Food products firm General Mills is set to report fiscal fourth-quarter numbers and Monsanto is due to hold a third-quarter earnings conference call.
At 1058 GMT, S&P 500 futures were up 7.8 points at 1323.3, Nasdaq 100 futures were up 12 points at 1923.5 and Dow industrial futures were up 49 points at 11,862.
EUROPEAN MARKETS: European markets are higher midday with banks leading the way after Barclays said it would raise around GBP4.5 billion pounds by issuing shares, in a move designed to shore up its capital base.
Shares in Royal Bank of Scotland and Credit Agricole also traded higher.
London's FTSE 100 is up 0.5% at 5662.50, with Barclays leading the advance.
BP shares climbed after it was upgraded to overweight from equal weight at Morgan Stanley. The broker said that the company's net income could grow 22% in 2009.
In Frankfurt, the DAX is up 0.8% at 6585.71, led by banks. Deutsche Postbank, Deutsche Bank and Commerzbank are up amid hopes that sale of Postbank could happen soon. In Paris, the CAC 40 is up 1.0% at 4520.51.
Bunds and gilts are down, as European equity markets stage a recovery. September bunds are down 0.23 at 110.35 and September gilts are down 0.04 at 104.14.
The dollar is narrowly mixed in Europe as investors square positions ahead of the U.S. Federal Open Market Committee's interest rate decision later in the day.
At 1025 GMT, the dollar was up at Y107.90. The euro was up at $1.5590, while the pound was up at $1.9735.
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