Author: Fiona Craig

The U.S. dollar ticked up on Wednesday, recovering slightly from recent two-month lows, as markets awaited the Federal Reserve’s upcoming interest rate decision. Despite the modest gain, the greenback remained under pressure as investors priced in expectations of policy easing.

At 04:10 ET (08:10 GMT), the Dollar Index, which tracks the currency against six major peers, rose 0.2% to 96.442, following a 0.7% decline on Tuesday to its lowest point since early July.

Eyes on the Fed

The Federal Reserve is widely anticipated to lower its benchmark rate by 25 basis points to a 4.00%-4.25% range at the conclusion of its policy meeting later today. Traders will closely monitor comments from Fed Chair Jerome Powell, which are expected to provide guidance on the trajectory of future rate adjustments.

Alongside the FOMC’s statements, the central bank will release its updated rate projections, known as the “dot plot,” which investors use to gauge the expected pace of monetary policy changes.

“The dollar has been selling off ahead of this event, but there are a few risks,” noted analysts at ING. “For example, we could see short-dated US rates back up a little and the dollar get a brief bid if the Fed Dot Plots continues to show just 50bp of rate cuts this year compared to the 70bp now priced.”

Euro and Sterling Show Minor Movements

In Europe, the euro slipped 0.2% to 1.1841 against the dollar after hitting a four-year high in the previous session. Eurozone inflation data, expected later today, is projected to show a 2.1% rise in August compared to 2.0% in July, broadly aligning with the European Central Bank’s target.

The ECB held interest rates steady last week but emphasized flexibility for future cuts amid uncertainty over trade, energy prices, and exchange rates. ING added, “We’d expect good demand for EUR/USD on any corrective dip to the 1.1750/1.1780 area during Powell’s press conference. Seasonality now builds against the dollar, especially in November and December, with 1.1910 likely the final resistance before 1.20 is reached.”

GBP/USD was slightly higher at 1.3636 after U.K. inflation held at 3.8% in August, nearly double the Bank of England’s target, indicating the BoE is likely to maintain current monetary policy on Thursday.

Other Currencies

The Japanese yen gave back some previous gains, with USD/JPY up 0.1% at 146.62. Data showed Japan’s trade deficit narrowed less than expected in August, with exports also falling less sharply thanks to a recent U.S. trade deal, though overall demand remained weak. The Bank of Japan is expected to keep rates unchanged at its upcoming meeting.

Meanwhile, USD/CNY edged down 0.1% to 7.1095, with the yuan supported by ongoing policy stimulus from Beijing, reaching its strongest level since November 2024. AUD/USD slipped 0.2% to 0.6671 following prior gains.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Oil prices remained steady in Asian trading on Wednesday after recent gains driven by concerns over potential disruptions in Russian output. Attention now turns to the U.S. Federal Reserve’s interest rate decision, which could influence crude demand.

Brent futures for November slipped slightly to $68.39 a barrel, while West Texas Intermediate fell to $64.09 a barrel as of 21:48 ET (01:48 GMT). Recent U.S. industry data showed a sharp 3.2 million-barrel draw in inventories for the week ending September 12, according to the American Petroleum Institute, typically signaling similar trends in the official government report due later in the day.

Oil has also been supported by a softer U.S. dollar, with markets pricing in a likely 25 basis point Fed rate cut, though some traders anticipate a larger 50-point reduction. Lower rates generally boost economic activity, which can lift fuel demand, yet caution remains over the Fed’s future guidance given persistent inflation concerns.

Geopolitical tensions continue to influence oil markets. Recent Ukrainian strikes on Russian energy infrastructure have raised the prospect of output cuts, with Transneft warning of potential production disruptions. Meanwhile, U.S. President Donald Trump has advocated higher tariffs on major Russian crude buyers such as China and India, further tightening supply expectations.

After a volatile August, when fears of oversupply weighed on prices, oil markets are now watching closely for both geopolitical developments and central bank signals that could shape near-term supply-demand dynamics.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Gold prices eased in early Asian trading on Wednesday as investors adopted a cautious stance ahead of the U.S. Federal Reserve’s interest rate decision and accompanying policy guidance later in the day.

Spot gold last traded down 0.4% at $3,673.38 per ounce by 02:40 ET (06:40 GMT), following a record high of $3,702.95 reached on Tuesday. December U.S. gold futures also dipped 0.4% to $3,710.77 per ounce.

Fed expected to trim rates

The market is largely anticipating a 25 basis point reduction in the federal funds rate, bringing it to a target range of 4.00% to 4.25%. Traders have already priced in the move, with focus now shifting to the updated “dot plot” of policymakers’ rate forecasts and comments from Fed Chair Jerome Powell at the post-meeting press conference. Investors are looking for clues on the pace and magnitude of potential additional cuts in 2026.

Lower interest rates typically support gold by reducing its opportunity cost, weakening the U.S. dollar, and enhancing its role as an inflation hedge and safe-haven asset.

“Continued concerns over the Fed’s independence will also remain the focus for the global market looking ahead,” ING analysts commented. The U.S. Dollar Index hovered near 11-week lows, providing additional backing for bullion.

Gold has climbed over 40% so far this year amid factors such as Trump’s trade policies, geopolitical tensions in the Middle East and Ukraine, and central bank purchases, analysts noted.

Other metals mostly weaker

Other precious and base metals also saw declines as traders adjusted positions ahead of the Fed announcement. Silver futures dropped 1.5% to $42.26 per ounce, while platinum slipped 0.3% to $1,400.60 per ounce. Copper futures eased as well, with London Metal Exchange copper down 0.5% at $10,084.20 per ton and U.S. copper falling 0.7% to $4.67 per pound.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stock futures showed little movement Wednesday as investors positioned themselves ahead of a key Federal Reserve interest rate announcement. While markets widely expect a rate cut, debate continues over its magnitude and the Fed’s broader outlook. Meanwhile, U.K. inflation held steady, and packaged foods giant General Mills (NYSE:GIS) is set to report quarterly results.

Muted Futures Ahead of Fed Announcement

At 03:30 ET, Dow, S&P 500, and Nasdaq 100 futures were largely unchanged, with Nasdaq 100 futures up slightly by 19 points, or 0.1%. Wall Street indices had retreated in the previous session, and the U.S. dollar slid to fresh 52-week lows, reflecting investor caution ahead of the Fed decision.

On the corporate front, Nvidia (NASDAQ:NVDA) shares fell after reports suggested weaker-than-expected demand for its new AI chips in China. Conversely, Oracle (NYSE:ORCL) gained amid rumors the company is part of a consortium set to keep the U.S. operations of short-form video platform TikTok running under a U.S.-China framework agreement.

Fed Rate Decision in Focus

The Federal Reserve is widely expected to lower interest rates at the close of its two-day policy meeting. Most analysts anticipate a 25 basis point reduction from the current 4.25%-4.5% range, while a smaller number of traders are considering the possibility of a larger 50 basis point cut.

Recent data suggesting a softening U.S. labor market contrasts with ongoing signs of persistent inflation. A rate cut could encourage investment and hiring but may also risk higher prices. Investors will closely monitor the Federal Open Market Committee’s commentary and updated rate projections, commonly known as the “dot plot,” for insights into future policy direction.

“Inflation remains above target and tariffs are likely to keep it elevated in the near term, but the balance of risks are tilted towards the need for more support for the economy,” analysts at ING noted.

U.K. Inflation Steady

In the U.K., consumer price inflation remained at 3.8% in August, nearly double the Bank of England’s 2% target, indicating the central bank is likely to hold rates steady at Thursday’s meeting. Monthly inflation rose 0.3%, faster than July’s 0.1% increase, while core CPI, which excludes food and energy, grew 0.3% month-on-month and 3.6% annually.

General Mills Earnings Preview

General Mills is scheduled to release first-quarter results before the U.S. market opens. Investors will monitor sales trends and outlook for consumer demand amid economic uncertainty and tariff-related concerns. Bloomberg consensus expects the packaged foods company, known for brands such as Chex and Nature Valley, to report adjusted EPS of $0.82 on $4.52 billion in net sales. Shares have declined roughly 22% year-to-date.

Commodities Update

Gold prices pulled back slightly from record highs, with spot gold down 0.6% at $3,667.61 an ounce by 03:30 ET, after reaching $3,702.95 on Tuesday. U.S. December gold futures also fell 0.6% to $3,704.20/oz.

Meanwhile, oil prices edged lower, giving back some of Tuesday’s gains amid concerns about potential disruptions to Russian production. Both Brent and WTI crude had risen over 1% the previous session, driven in part by worries over Ukrainian drone attacks on key export ports and refineries.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

British stocks opened slightly higher Wednesday, supported by steady inflation figures, while broader news included enhanced U.K.-U.S. tech collaboration, GSK’s $30 billion U.S. investment plan, and President Donald Trump’s state visit to the U.K.

At 07:26 GMT, the FTSE 100 gained 0.05%, while the pound slipped 0.09% against the U.S. dollar to 1.36. Germany’s DAX rose 0.5%, and France’s CAC 40 advanced 0.2%.

U.K. Inflation Remains Unchanged

Inflation in the U.K. held steady at 3.8% in August, nearly double the Bank of England’s 2% target, suggesting that the central bank will likely maintain its current monetary policy during Thursday’s meeting. The August rate matches July’s level, the highest since January 2024, when inflation stood at 4.0%.

GSK Commits $30 Billion to U.S. Expansion

Pharmaceutical giant GSK plc (LSE:GSK) announced plans to invest $30 billion in the United States over the next five years. The funds will support research and development, supply chain upgrades, and new manufacturing facilities, including a $1.2 billion plant near Philadelphia for respiratory and oncology treatments.

“Today, we are committing to invest at least $30 billion in the United States over the next 5 years, further bolstering the already strong R&D and supply chain we have in the country,” said GSK CEO Emma Walmsley.

AstraZeneca’s Fasenra Falls Short in COPD Trial

In pharmaceutical news, AstraZeneca PLC’s (LSE:AZN) asthma therapy Fasenra did not meet the primary endpoint in a late-stage trial for patients with chronic obstructive pulmonary disease (COPD). AstraZeneca said that safety and tolerability observed in the RESOLUTE trial remained consistent with the drug’s known profile. A full analysis of the results will be conducted and shared with the scientific community.

Barratt Redrow Reports Strong Financial Results

Barratt Redrow PLC (LSE:BTRW) reported robust performance for the year ending June 29, 2025. The U.K.’s largest housebuilder posted a 33.8% increase in revenue to £5.58 billion from £4.17 billion the prior year. Statutory profit before tax rose 60.5% to £273.7 million. Excluding costs tied to the Redrow acquisition, adjusted profit before tax reached £591.6 million, slightly surpassing analysts’ forecasts of £582.8 million.

U.K. and U.S. Strengthen Tech and Energy Cooperation

On the international front, the U.K. and U.S. have signed a technology agreement to boost collaboration in artificial intelligence, quantum computing, and civil nuclear power. Leading American companies, including Microsoft (NASDAQ:MSFT), have pledged £31 billion ($42 billion) in U.K. investments.

Shell Adjusts Operations in Indonesia

Shell PLC (LSE:SHEL) announced reductions in operating hours and staff at select Indonesian gas stations due to supply constraints.

Ben & Jerry’s Co-Founder Jerry Greenfield Departs

In corporate developments, Jerry Greenfield, co-founder of Ben & Jerry’s, resigned after 47 years, ahead of Unilever PLC’s (LSE:ULVR) planned ice cream spinoff. Greenfield voiced his disappointment on social media, stating: “It’s profoundly disappointing to come to the conclusion that that independence, the very basis of our sale to Unilever, is gone.”

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

AstraZeneca (LSE:AZN) announced on Wednesday that its asthma medication Fasenra did not achieve the main objective in a late-stage trial involving patients with chronic obstructive pulmonary disease (COPD).

The company stated that the safety and tolerability observed in the RESOLUTE trial were consistent with the drug’s known profile. It added that a comprehensive review of the trial data will be completed and subsequently shared with the scientific community.

Fasenra is currently approved as an add-on therapy for severe eosinophilic asthma in over 80 countries, including the U.S., EU, Japan, and China. It is also authorized in the U.S. and Japan for children and adolescents aged six and older, and in more than 60 nations for eosinophilic granulomatosis with polyangiitis. Additionally, the treatment is under review for hypereosinophilic syndrome.

The COPD treatment market is attracting growing attention, with Sanofi (EU:SAN) and GSK (LSE:GSK) introducing new therapies, and Merck & Company (NYSE:MRK) moving to acquire Verona Pharma to gain access to a potentially high-revenue treatment. Roche (USOTC:RHHBY) also reported a trial setback in July.

Fasenra has previously struggled in the COPD arena, missing expectations in a 2018 study. In the latest trial, the medication was tested in patients with moderate to very severe forms of the disease.

Separately on Wednesday, AstraZeneca shared positive late-stage results for its lupus therapy Saphnelo. The company stated that the TULIP-SC Phase III study of self-administered Saphnelo met its primary endpoint in patients with systemic lupus erythematosus.

The drugmaker said the results “showed that the subcutaneous (SC) administration of AstraZeneca’s Saphnelo (anifrolumab) demonstrated a statistically significant and clinically meaningful reduction in disease activity compared to placebo.”

The study assessed the safety and efficacy of subcutaneous Saphnelo versus placebo in patients with moderately to severely active, autoantibody-positive lupus, with all participants continuing their standard care.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Jerry Greenfield, one of the founders of Ben & Jerry’s, has stepped down from the ice cream company, reportedly saying he could no longer remain part of a business whose independence had been “silenced” by parent company Unilever (LSE:ULVR).

According to a letter reported by the Financial Times, Greenfield pointed to the gradual erosion of the brand’s autonomy as his main reason for leaving, despite merger terms originally designed to preserve the company’s social mission.

“That independence existed largely because of the special merger agreement” negotiated by Greenfield and fellow co-founder Ben Cohen, he wrote. Greenfield described the current situation as “profoundly disappointing,” adding that the very foundation of the sale to Unilever—the brand’s independent voice—has been lost.

His departure highlights growing tensions between the socially-minded ice cream company and its parent, Unilever, which acquired Ben & Jerry’s with commitments to maintain the brand’s ability to pursue social advocacy.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

European equities inched higher on Wednesday as investors positioned themselves ahead of the U.S. Federal Reserve’s upcoming policy announcement and the release of regional inflation figures.

By 07:05 GMT, Germany’s DAX index had gained 0.5%, France’s CAC 40 rose 0.3%, and the U.K.’s FTSE 100 was up 0.1%.

Markets Focus on Fed

Attention across global markets, including European stocks, is centered on the conclusion of the Fed’s two-day meeting later today. The central bank is widely expected to lower interest rates, which has generally supported riskier assets.

Policymakers will also provide guidance on the trajectory of rates over the next year and release the quarterly Summary of Economic Projections. Markets are pricing in a near-certain 25-basis-point rate cut to bring the Fed’s benchmark rate to the 4.00%-4.25% range. Investors also anticipate additional easing, potentially totaling around 150 basis points by the end of next year.

“Equity markets are edging higher amid resilient business sentiment and the prospect of lower core borrowing costs,” noted analysts at ING.

Regional Inflation in Focus

Beyond the Fed, attention will also turn to eurozone inflation data. August CPI is forecast to rise 2.1% year-on-year, slightly above July’s 2.0%, and close to the European Central Bank’s target. The ECB kept rates unchanged last week but signaled flexibility regarding possible future cuts, citing uncertainties in trade, energy prices, and exchange rates.

In the U.K., inflation held steady at 3.8% annually in August, nearly double the Bank of England’s target, suggesting policymakers are likely to maintain current monetary settings when they meet on Thursday.

Trump Visits the U.K.

U.S. President Donald Trump is in the U.K. for a state visit, spending time at Windsor Castle with King Charles and Queen Camilla, and scheduled to meet Prime Minister Keir Starmer on Thursday.

During Trump’s visit, pharmaceutical giant GSK (LSE:GSK) announced plans to invest at least $30 billion in U.S. research, development, and manufacturing over the next five years. The investment includes $1.2 billion for advanced manufacturing, AI, and digital technologies to develop “next-generation biopharma facilities and laboratories,” the company said.

Meanwhile, Nestlé (BIT:1NESN) revealed that Chairman Paul Bulcke will step down earlier than planned, handing over leadership to former Inditex CEO Pablo Isla. The announcement accelerates a period of significant management change at the Swiss food and beverage company, maker of KitKat and Nescafé.

Oil Prices Slip from Two-Week Highs

Crude futures edged lower Wednesday, giving back some of Tuesday’s gains amid lingering concerns over potential disruptions to Russian supply.

At 03:05 ET, Brent crude fell 0.2% to $68.33 per barrel, while West Texas Intermediate declined 0.2% to $64.39 per barrel. Both benchmarks had jumped over 1% the previous session, reaching two-week highs, following fears that Russian exports could be impacted by Ukrainian drone attacks on key ports and refineries.

U.S. petroleum data also supported oil markets, showing an unexpected 3.2 million-barrel draw in inventories for the week ending September 12, according to the American Petroleum Institute. Official inventory figures are expected later Wednesday.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Barratt Redrow PLC (LSE:BTRW) has posted resilient results for the year ending June 2025, with adjusted profits surpassing expectations despite a challenging housing market. The acquisition of Redrow has proven transformative, with synergies realized ahead of schedule and the integration process largely complete. While the company anticipates limited growth in FY26, it maintains a solid balance sheet and a clear long-term growth strategy.

During the year, Barratt Redrow completed 16,565 homes, and the net private weekly reservation rate rose by 16.4%. The company also proposed an 8.6% dividend increase and continued share buyback initiatives. Operational highlights include the successful integration of Redrow, industry-leading quality and sustainability practices, and new joint ventures aimed at developing over 4,000 homes in West London.

The company’s outlook is moderate, influenced by mixed financial performance and bearish technical indicators. Nonetheless, a strong balance sheet and positive corporate events, including the share buyback program, provide some support. High valuation levels and weak cash flow conversion remain areas of concern.

About Barratt Redrow PLC

Barratt Redrow PLC operates in the residential housing sector, developing and selling properties under three leading brands. The company leverages a strong land position and a strategic approach designed to deliver sustainable growth, targeting the construction of 22,000 homes annually over the medium term.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

PZ Cussons (LSE:PZC) has reported ongoing progress toward its strategic objectives for the fiscal year ending May 2025, emphasizing operational efficiency and business transformation. The company experienced strong brand activity in the UK and Indonesia and achieved revenue growth in the ANZ region, despite a 2.7% decline in reported revenue due to foreign exchange effects. The sale of its 50% stake in PZ Wilmar for $70 million is expected to bolster the company’s financial position, while retaining the St.Tropez brand aims to enhance long-term value. PZ Cussons is also reviewing its African operations and has introduced cost-saving measures to strengthen brand development. Looking ahead, the company anticipates around 10% like-for-like revenue growth in FY26, driven by expansion in Africa and the Asia-Pacific region.

Although PZ Cussons faces financial and technical challenges, including declining revenues and bearish technical indicators, strategic corporate actions such as asset disposals and management alignment with shareholders provide some positive outlook.

About PZ Cussons

PZ Cussons, headquartered in Manchester, UK, is a consumer goods company with a history dating back to 1884. The company operates across Europe, North America, Asia-Pacific, and Africa, focusing on hygiene, baby, and beauty products. Its portfolio includes well-known brands such as Carex, Childs Farm, Cussons Baby, Imperial Leather, Morning Fresh, Original Source, Premier, Sanctuary Spa, and St.Tropez. Sustainability and employee wellbeing are central to its corporate strategy.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.