European shares are set to open lower this morning after the SP 500 hit its lowest level in 14 months on concerns over slowing economic growth, dragging Asian markets into the red.
A speech by Chinese President Xi Jinping which investors had hoped could lift the morale "barely caused a ripple in the stormy sea of red" (to use the words of Stephen Innes, head of trading APAC at OANDA) and now the focus turns inevitably to the Federal Reserve which is almost certain to raise interest rates at the end of its two-day meeting on Wednesday.
" the big question remains, will Jay Powell remove or include the "gradual increases" reference to the 2019 dot plots," adds Innes.
And here's Trump's latest tweet on the issue: "It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike.
Take the Victory!" Financial spreadbetters at IG expect London's FTSE to open 36 points lower at 6738, Frankfurt's DAX to open 33 points lower at 10739 and Paris' CAC to open 20 points lower at 4780.