Markets expect half-point cut from Fed

The majority of analysts expect the Federal Reserve to cut rates by a further half-a-percentage point on Wednesday.

Data from the Chicago Board of Trade's interest rate futures index shows traders were pricing in a 74% chance of a 50 basis point cut in the federal funds rate at 14.00 GMT today. A 25 basis point cut is already fully priced.

Traders on Monday had priced in a 90% chance of a cut after data on new home sales in the United States showed a 5% fall in the annual rate. However, posit