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FED MINUTES IN FOCUS AS U.S. EQUITY MARKETS SET TO OPEN SLIGHTLY HIGHER
U.S. main stock indexes were set to open slightly higher on Wednesday, as investors pay attention towards the Fed's meeting minutes and commentary from speakers to gauge the interest rate path, while spot gold prices breached the $4000 per ounce milestone.
As the government shutdown extends into its eighth day, market participants have parsed through any available private and alternative data for clues on the interest rate outlook and scrutiny of the September meeting minutes will be high, that is scheduled to come in later in the day.
Investors will also be looking for remarks from St. Louis Fed President Alberto Musalem, Fed Governor Michael Barr, Dallas Fed President Lorie Logan, Chicago Fed President Austan Goolsbee and Minneapolis Fed President Neel Kashkari.
Carlyle Group CG.O released its own measure of U.S. economic data on Tuesday, including a sharply lower estimate for September jobs growth despite rising economic output, that pointed to similar other private indicators of a softening labor market.
France's political crisis, the U.S. government shutdown and the change in Japan's political regime have created some unrest among financial markets looking for economic and political stability.
This has made them move to safe haven bets, as gold prices XAU= raced past the $4,000 per ounce mark for the first time on Wednesday continuing its blistering rally this year.
"(Gold's) momentum is well supported, driven primarily by expectations of further easing around the globe. The leadership change in Japan, which has seen deficit-dove Sanae Takaichi take the reins of the ruling Liberal Democratic Party, has served as a new boost this week," said Daniela Hathorn, senior market analyst at Capital.com.
"A softer dollar, persistent central bank buying and elevated geopolitical risk continue to underpin the move," Hathorn added.
U.S. listed shares of gold miners rose in premarket trading.
Here's a market snapshot at 9:10 a.m. ET
(Siddarth S)
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