December E-mini S&Ps (ESZ15 -0.08%) are down -0.10% as the FOMC heads into its two-day policy meeting that begins today and decides whether to raise interest rates for the first time in 9-years. European stocks are up +1.24% on a possible increase in M&A Activity as SABMiller soared 21% after it said that AB InBev intends to make a takeover proposal. Emerging market stocks rose as Chinese stocks surged in the last hour of trade to close up nearly 5% and snap a two-day slump. Asian stocks closed higher: Japan +0.81%, Hong Kong +2.38%, China +4.89%, Taiwan +0.89%, Australia +1.50%, Singapore +0.94%, South Korea +2.22%, India +1.00%.

The dollar index (DXY00 +0.19%)is up +0.19%. EUR/USD (^EURUSD) is down -0.47% on dovish comments from ECB Vice President Constancio and ECB Governing Council member Nowotny who both said the ECB could expand QE. USD/JPY (^USDJPY) is +0.12% as the yen weakened after S&P downgraded Japan’s credit rating.

Dec T-note prices (ZNZ15 -0.04%)are down -1.5 ticks.

ECB Vice President Constancio said that the ECB has the scope to expand QE if needed as “we are very far from what the major central banks done.”

ECB Governing Council member Nowotny said that weak Eurozone inflation is a “big problem for the ECB” and that an extension or an increase in volume of the ECB’s asset purchases “is thinkable.”

Standard & Poor’s cut Japan’s long-term credit rating one level to A+, saying the government’s economic revival strategy-dubbed “Abenomics”- “will not be able to reverse this deterioration in the next two to three years.”

In an attempt to quell capital outflows, the National Development and Reform Commission, China’s top planning agency, said it will remove quotas for companies to raise funds in overseas bond and loan markets. China’s foreign-exchange reserves plunged a record -$93.9 billion last month after the PBOC intervened to support the yuan following the Aug 11 devaluation.