Markets calm after the long holiday

I't's back to work in the UK afer the long Easter holiday and what has been happening while we have basked in brilliant sunshine?

Not much really as the markets await the results of the US Federal Open Market Committee (FOMC) meeting taking place  today and tomorrow.

Why should this matter to  the UK?

The Fed could decide at these meetings that the US economy is robust enough to stand on it's own two feet and start unwinding the economic stimulus put in place to reverse the economic downturn. This will produce expectations that QE unwinding could happen in Europe sooner or later also, potentially derailing the fragile recovery.

It looks unlikely that anything significant will happen now but the minutes of the meeting will be examined for signs of future strategy that may effect the global recovery so it is a focal point at a time when markets are looking for a little direction.

Oil prices are a little lower as the Saudi's say they are not comfortable with the current price levels and the situation with Libya will be watched closely  for signs of deterioration.