US STOCKS-Futures on back foot before Fed policy decision

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* Futures down: Dow 0.07%, S&P 0.11%, Nasdaq 0.12%

By Medha Singh
Sept 18 (Reuters) - U.S. stock index futures dipped on
Wednesday as investors waited for the Federal Reserve's decision
on interest rates in what has been a rocky week for global
markets.
The central bank is expected to lower interest rates by a
quarter percentage point for the second time in three months,
but a deep divide among policymakers has seen traders abandon
all bets on a third reduction this year.
The Fed's policy statement is due at 2:00 p.m. ET (1800 GMT)
followed by Chair Jerome Powell's address a half hour later.
Rate-sensitive banks were little changed in premarket
trading after the banking index .SPXBK closed 0.6% lower on
Tuesday following an unexpected squeeze on short-term money
market borrowing costs. Central banks around the world have been taking steps to
cushion the impact of a prolonged U.S.-China trade war and other
geopolitical risks. Last week, the European Central Bank cut
interest rates further and said it would buy back bonds
indefinitely.
Expectations of lower rates have spurred a Wall Street rally
this year, with the benchmark S&P 500 .SPX now less than 1%
below its all-time high.
At 7:00 a.m. ET, Dow e-minis 1YMcv1 were down 18 points,
or 0.07%. S&P 500 e-minis EScv1 were down 3.25 points, or
0.11% and Nasdaq 100 e-minis NQcv1 were down 9.25 points, or
0.12%.
Markets had come under pressure earlier this week after
attacks on Saudi Arabia's oil facilities caused a spike in oil
prices and fueled geopolitical tensions.
Package delivery company FedEx Corp FDX.N warned its
full-year earnings would miss analysts' estimates, sending its
shares 11.7% lower premarket. Adobe Inc ADBE.O fell 2.3% after the Photoshop software
maker forecast tepid revenue for the current quarter.
General Mills Inc GIS.N dropped 4% after missing quarterly
sales expectations, hit by weak demand for its yogurt and snacks
in the U.S domestic market. Data expected at 8:30 a.m. ET (1230 GMT) is expected to show
U.S. housing starts rising about 5% to 1.25 million in August
from a month earlier.