Chinese markets opening in the green, helping boost global sentiment

? Thursday’s Fed rate announcement plays growing role in the markets

? U.S. markets gain following weak PPI and sentiment data

? BoE keeps rates unchanged, strengthening GBP

Most markets traded sideways during last week, seeing rather modest weekly changes, as investors prepared for the Fed’s rate decision, this Thursday. The fact that no significant economic data was scheduled for release also contributed to the muted session. The Hang Seng picked up steam on Tuesday, securing a 7.5% rally by the end of the day’s session, following speculation that government controlled funds have been again intervening in the market. These gains further translated to the U.S. market opening in the green, following the Labor Day holiday, sending the S&P 500 (SPY) to open Tuesday’s session with close to a 1.6% gain and the Nasdaq SPYwith nearly a 1.8% increase.

Market volatility continued to moderate gradually during the week, with the VIX (VIX) index sliding another 2.41 points, though remaining at an elevated-still, in historical perspective, 23.2 points. On Friday, August’s Producer Price Index indicated a continued 0.8% annual decrease of prices. The preliminary September estimate for the University of Michigan’s Consumer Sentiment Index was published at a level of just 85.7 points, far below August’s print of 91.9 and the analyst consensus expecting 91.1 points. The Fed decision’s imminence seems to have revived the good news is bad news paradigm towards the end of the weekly session – The S&P500 recorded a 0.45% gain during the day. In merely four trading days the S&P concluded a 2.07% weekly increase, its largest weekly gain in two months.

Noteworthy increases were recorded in other major U.S. indices. The Nasdaq increased close to 3% during the week, supported by Apple’s stock which gained over 4.3% amid its conference introducing the iPhone 6S. Gains in Europe were more modest, with the DAX scoring a 0.85% weekly increase and the FTSE 100 adding a more respective 1.24%.