European equites are set to start with modest gains this morning. It’s nothing to get excited about though, just treading yesterday’s ground ahead of this week’s FOMC meeting. You could take heart in the fact that we haven’t followed Asia lower on yet more China worries. However, it’s more he case that with the Fed rate decision looming, there’s too much uncertainty to price in at the moment. Make no mistake though, the China implosion hasn’t been forgotten. Once the Fed’s out the way we could see a horrendous snap readjustment. Concerns over a slowdown in Chinese economic growth continued to rattle global markets sending the Dow Jones 66 points down to 16,388. The slump was led by raw materials companies with many investors on standby ahead of the much awaited Fed meeting later this week. Mixed economic data in the US coupled with a selloff in China have increased bets of no action until at least December at the Fed. The shared currency was largely flat around 1.1323 versus the US dollar. Europe has seen political risk on the rise with many populist parties on the march taking advantage of disgruntled masses. WTI crude prices dropped 65 cents to $44.13 as inventories were seen rising. OPEC trimmed estimates from outside group for next year. Gold prices also closed rather unchanged at $1108 as all eyes are on the Fed but many now expect a retest of the recent low.

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