Markets Breathe Sigh of Relief Ahead of Fed Decision

Global markets are edging higher today as investors breathe a sigh of relief from a respite in the global bond selloff and a decline in oil prices. This has steadied nerves ahead of the pivotal U.S. Federal Reserve decision later today.

The TSX futures are following Wall Street's positive sentiment, which rose after major North American markets closed down yesterday. Lennar Corp's earnings are being closely watched on Wall Street, with JPMorgan analysts maintaining a 'tactically cautious/neutral view' into the Fed meeting.

They note that market consensus expects a 25 basis-point rate hike accompanied by little forward guidance, but warn that inaction risks institutional credibility. Overseas, major European indices are up, with the pan-European STOXX 600 rising 0.35% in morning trading.