Expected Fed action boosts Dow; FTSE up 1.5%

The Dow Jones has made early gains in trading as investors await the Fed's rate decision tomorrow and a possible extension of its quantitative easing programme.

As at 15.30 GMT, the Dow was up 0.93%, or 98 points, to 10706, building on the momentum of its last session which rounded off a three-week rally. There is a growing speculation amongst traders tomorrow's meeting of the Federal Reserve's rate-setting committee will see an extension of its asset-buying programme as the Fed looks to stimulate an economy showing signs of stalling. Adding to the positive sentiment, figures released later today by the National Association of Home Builders is expected to show its September housing market index rising from 13 to 14. Further data on August hou...