The Fed’s monetary policy decision is due, global stocks are mostly lower, oil prices slip, and U.S. data is due. Here are four things to know in the market on Wednesday, December 14.
1. The Fed’s Monetary Policy Decision is Due
The U.S. Federal Reserve will announce its monetary policy decision at 2PM ET today. The central bank is largely expected to raise rates for the first time in a year. Economists surveyed by Bloomberg are projecting a 25 basis-point increase.
The Fed will also announce its economic forecasts.
Janet Yellen will give a press conference after the decision is announced.
2. Global Stocks are Lower
European markets were mostly lower ahead of the Fed’s decision. The FTSE 100 was down 0.16%, Germany’s DAX slipped 0.28%, and France’s CAC 40 tumbled 0.65%.
The MSCI Asia Pacific Indexrose 0.1% overnight, but Japan’s Topix index declined 0.1%.
Futures were lower, with Dow futures down 0.06%, Nasdaq 100 futures slipped 0.02%, and S&P 500 futures falling 0.02%.
3. Oil Prices Slide
Oil prices slipped after an announcement from the American Petroleum Institute on Tuesday that crude oil inventories in the U.S. unexpectedly increased by 4.7 million barrels.
The agency also said OPEC members pumped oil at record-high levels in November, which may render the production cut ineffective.
Brent was down 58 cents to $55.13 per barrel. U.S. crude slipped 1.17% to $52.36 a barrel.
4. U.S. Data Due
The U.S. is slated to release data on producer prices and retail sales ahead of the Fed’s decision.
Consumer spending accounts for over two-thirds of the U.S.’s economic output. The holiday shopping season is the most important time of the year for retailers.
Retail sales are expected to have increased by 0.3% last month. Retail sales were up by 0.8% the previous month, much higher than expected.
