US stocks dropped on Tuesday and government bonds came under pressure as investors awaited a closely watched interest rate decision by the Federal Reserve.
Wall Street’s S&P 500 gauge ended the day down 1.1 per cent, while the technology-heavy Nasdaq Composite fell 1 per cent. In Europe, the regional Stoxx 600 gauge closed 1 per cent lower, while London’s FTSE 100 slipped 0.6 per cent as traders returned to their desks following a UK public holiday to mark the state funeral of Queen Elizabeth.
Central bankers are poised this week to discuss how far they can jack up borrowing costs to curb rapid price growth while facing the prospect of a prolonged global economic downturn.
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