European stocks were little changed as investors weighed the implications of further signs of slowdown in China’s economy, while the Federal Reserve debates when to raise interest rates.
The Federal Reserve has traditionally influenced the Federal Funds Rate or the interbank interest rate on excess reserves within the banking system through open market operations where they buy bonds from primary dealers providing reserves. The increased supply of reserves in the system brings the fed funds rate down.
Global economic growth will be lackluster during the next two years, weighed down by the slowdown in China and other emerging markets, Moody’s Investors Service said in a report on Tuesday. That muted growth will hinder governments in reducing their debts and prevent central banks from raising interest rates significantly, said the report’s author, Marie Diron, in a news release.
Next Trading Day's Important Events
- 13:30 (GMT 3) BOE's Governor Carney speech
- USDJPY: 123.37
- EURUSD: 1.0682
- S&P 500: 2,072.10
- NASDAQ : 5059.9