U.S. stocks were set to decline at the open on Wednesday ahead of a statement by the Federal Reserve due at 2 pm EDT, with the bank expected to be clearer on how
soon it plans to tighten monetary policy.
The U.S. central bank is expected to provide indications on the timing of its first interest rate hike in nearly a decade, as it assesses whether the U.S. economic recovery can hold up against collapsing oil prices and a soaring dollar.
The U.S. dollar has strengthened against most major currencies as central banks around the world ease monetary policy while the Fed is on track to tighten, says Reuters.
European markets are mixed on Wednesday. Asian markets also ended with mixed results.
It's worth keeping an eye on the DAX index in Germany, which is declining, as anti-austerity protests outside the European Central Bank's new headquarters turn violent.
Looking back to Tuesday, the Dow Jones industrial average lost 128 points, while the S&P 500 fell 0.3% and the Nasdaq rose 0.2%.
Besides the upcoming statement, there are three more things to watch:
1) Politics overseas.
Israeli Prime Minister Benjamin Netanyahu declared victory for his Likud party sending the local stock markey 0.5% higher.
Separately, British investors are looking ahead to the latest U.K. budget,
an annual event where the government outlines its plans for taxes and
spending. Chancellor George Osborne's speech could set the tone for
campaigning before the U.K. general election on May 7.
2) Sony, BMW, Standard Chartered are market movers.
In Japan, shares in Sony (SNE) rose by 5.5% in Japan after the firm announced final third quarter results showing sales and profits were better than preliminary figures reported in February.
In London, shares in British bank Standard Chartered (SCBFF) are rising by about 7%. CNNMoney reports that investors have become more upbeat about the struggling bank after it said it would install a new CEO, Bill Winters, who previously worked as the co-head of JP Morgan's (JPM) investment bank.
Shares in BMW (BAMXY) are declining by about 3% in Germany after the automaker posted higher annual sales and profits, but the growth wasn't enough to impress shareholders.
4) Earnings.
FedEx (FDX) and General Mills (GIS) are reporting ahead of the open.
Williams-Sonoma (WSM) and Guess (GES) will report after the close.
