Market themes of the Day: High tension ahead of the Fed

What you need to know before markets open

Main themes:

• Markets are eagerly awaiting the US Federal Reserve decision later in the day. The Fed is set to raise rates and signal another move in December. The prospects for the future are unknown. They will release the statement and new forecasts at 18:00 GMT. Fed Chair Powell will hold a press conference at 18:30 GMT. See the Fed Preview.
• Brexit negotiations continue with no breakthrough on the customs union and the Irish border.
• Oil prices hold their high ground after US President Donald Trump criticized OPEC. 

Japan:

• The BOJ's Core CPI remained unchanged at 0.5%. 

New Zealand:

• The ANZ Business Confidence advanced from -50.3 to -38.3 points in September, giving a boost to the NZD/USD.
• New Zealand's trade balance widened to 1.484 billion in August.
• The Reserve Bank of New Zealand is expected to leave the interest rate unchanged at 1.75% when it makes its rate decision at 21:00. Governor Adrian Orr holds a press conference at 22:00. 

Europe

• The ECB's Peter Praet cooled down expectations by saying that Draghi's comments on Monday were "nothing new." Draghi said that inflation is on the rise.
• An ally of German Chancellor Angela Merkel lost a vote for a senior party job. Merkel's coalition is on shaky ground.

UK

• UK PM Theresa May said that no deal is better than a Canada-style free-trade agreement. Her Conservative Party begins its annual conference on Sunday. 
• The opposition Labour Party is getting close to supporting a second referendum. Party leader Jeremy Corbyn delivers his keynote speech later in the day.
• UK High Street Lending and CBI Realized Sales are due later in the day. 

US

• The Conference Board's Consumer Confidence surprised with 138.4 points in September, the highest in 18 years. August's figure was revised tot eh upside.
• The Richmond Manufacturing Index beat expectations while the S&P/CS Composite-20 HPI missed expectations. 
• New Home Sales for August are released at 14:00 and are projected to remain around the 627K level seen in July. The impact will likely be limited ahead fo the Fed.