Federal Reserve Expected to Hold US Interest Rates Steady

Wall Street futures point to higher open in a week marked by Fed policy decision

PNC shares touched a record $133.69 before closing at $133, up 1.3 percent.

A third successive record on Wall Street, fanned by speculation about Trump's economic agenda, was not enough to induce much buying in the region as dealers cashed in recent gains. The central bank is widely expected to keep its benchmark lending rate unchanged at -0.1 percent.

Spanish government bonds moved roughly in line with peers, having underperformed on Wednesday after Spanish police raided Catalan government offices and arrested officials on Wednesday to halt a banned referendum on independence.

While a September interest rate increase is not expected, investors will closely study Yellen's views on inflation. USA central bankers are counting on steady growth and low unemployment to raise inflation closer to their goal, which would support their policy of gradual tightening through interest-rate increases and a reversal of quantitative easing.

"At least over the near term, probably between now and the end of October, the market is at risk", he said.

The two-year swap rate was unchanged at 2.24 percent while 10-year swaps rose 2 basis points to 3.27 percent.

Industrial companies, including airlines, led the gainers Wednesday. India's Sensex gained 0.6 percent to 32,472.62. Bank of America rose 1.4 percent.

At 5 p.m., the dollar stood at ¥111.39-39, down from ¥111.70-70 at the same time Tuesday. The euro strengthened to $1.2015 from $1.1996.

Among the best performers, Mitsubishi Estate and Mitsui Fudosan are rising more than 5 percent each, while JGC advancing more than 4 percent.

Cereal maker General Mills was also down 8 percent after reporting a disappointing quarter.

On the commodities front, the iron ore price has slipped over 1.5 per cent, while the oil price marginally fell. Johnson Controls rose 3 percent and American Airlines rose 2.3 percent. The strong economy and loose financial conditions also gives the central bank confidence that the market will be able to handle the extra bond issuance. Yellen said the Fed expects inflation to gradually rise to 2 percent, while acknowledging that policymakers do not always understand what moves prices and wages. The report from the National Association of Realtors pulled down homebuilder shares.

Gold miners are also weak after gold prices fell overnight.

According to a senior White House official, Trump is expected to address North Korea, and air his frequent grievance that the U.S. is shouldering too much of the financial and military burden as a global leader, reported Dow Jones Newswire. Brent crude, used to price global oils, gained $1.15, or 2.1 percent, to $56.29 a barrel in London.

-The MSCI Emerging Market index was little changed.

-Gold futures dropped 0.5 percent to $1,304.30 an ounce. Spot silver lost 1.6% to trade at $16.85/oz.