Global stocks tread water after hitting record highs, as all eyes turn to the Federal Reserve

Global stocks tread water after hitting record highs, as all eyes turn to the Federal Reserve

Global stocks were little changed on Wednesday as investors awaited the latest Federal Reserve decision, which is likely to see the central bank start cutting back its support for the economy. Equities rose to record highs the previous day, with the closing above 36,000 for the first time as a solid third-quarter earnings season continued. On Wednesday, and were roughly flat, while were up 0.1%. China's index slipped 0.29% overnight after Beijing said the economy is dealing with new "downward pressures." Japanese markets were closed for a holiday. Europe's continent-wide was roughly flat, while Britain's eased 0.35%. The main event on Wednesday is the Federal Reserve's monetary policy decision after a two-day meeting. Most analysts expect the Fed to announce it will start "tapering" - that is, cutting back on - its $120 billion of bond purchases each month. The purchases began in early 2020 to calm markets and flood the economy with cash to encourage lending as coronavirus whacked the economy. But policymakers are concerned about strong inflation and think the economy can now manage without so much support. "Fed officials agree that 'substantial further progress' has been made on both the inflation and employment mandates," said James Knightley,