[R]9:45AM U.S. markets opened lower on weak tech stocks and nervousness ahead of FOMC meeting.[/R]
Wall Street started trading lower, reflecting cautiousness before the FOMC meeting, as well as weakness in the tech sector amid disappointing revenue forecast from Cisco Systems. Investors, who expect that interest rates will remain unchanged, are more concerned about the central bank''s economic assessment statement. The downward trend was also attributed to consolidation of market's record gains of the last two months.

Technology giant Cisco (CSCO: chart) slipped 6% after projecting slowing revenue growth. The company reported a 34% profit rise and 21% revenue rise. Walt Disney (DIS: chart) weighed on the Dow, falling 1.2% after posting lower-than-expected revenue. At the same time, the blue-chip average was helped by International Business Machines (IBM: chart) which rose 1.3% after Goldman Sachs lifted its rating on the stock to buy from neutral.

In other coeporate news, home builder Toll Bros (TOL: chart) lost 0.6% after it issued another profit warning, noting that tighter lending standards were affecting affordability at lower price points. Toyota Motor (TM: chart) lost 0.6% after it posted a 9% profit rise on 10% revenue growth in Q1, boosted by strong U.S. and European sales.

In early trading, the Dow slipped 14.55, or 0.11%, to 13,294.52. The S&P's 500 index was down 3.48, or 0.23%, at 1,504.24, and the Nasdaq declined 15.15, or 0.59%, to 2,556.60. Bonds were little changed ahead of the Fed's decision. The yield on the benchmark 10-year Treasury note slipped to 4.63% from 4.64% late Tuesday.


[R]9:30AM UK benchmark index is lower Wednesday as speculation around Rio Tinto fizzles out.[/R]

The UK benchmark is lower in mid-afternoon trading on Wednesday. The FTSE 100 is 0.18% lower at 6,538.

Advancers

Rio Tinto is still higher, up 6.4%, even though it announced it will refrain from comment on market gossip. Its shares jumped by 11% at one point on the Australian market overnight as the story of a bid from BHP took hold.

Other miners also advanced in sympathy. Kazakhmys gained 3.1%, Vedanta rose 1.8% and BHP itself was 2.2% higher.

Hanson gained 0.7% as it confirmed that HeidelbergCement was considering a bid for the aggregates provider.

Scottish & Newcastle, also seen as a bid target, gained 1.7% after robust figures from its eastern European joint venture BBH. Broker upgrades sent DSG International 3.3% higher.

Decliners

Sage Group, the last remaining technology stock on the FTSE 100, shed 3% after it said it had plans to restructure in the US and said it was looking to make further acquisitions.

Ex-dividends also weighed on the index. Antofagasta retreated 4.8% and Rexam lost 2.5%. Pub operator JD Wetherspoon lost 3.6% after it warned that higher costs in preparing outlets for the upcoming UK smoking ban would take its annual profits marginally below expectations.

EasyJet, the airline, dropped 3.1% despite cutting its interim losses as it announced it had reduced ticket prices further in a competitive market.


[R]9:00AM U.S. stock futures traded lower on rate concerns and Cisco forecast.[/R]
U.S. stock futures moved to the downside on Wednesday amid cautiousness before Fed Reserve’s interest rate policy decision. The Fed is due to announce its interest rate decision today, with the market largely expecting that rates will remain unchanged at 5.25%.

Technology giant Cisco Systems and entertainment company Walt Disney also weighed after posting quarterly results. Cisco (CSCO: chart) shares fell 5.1% in pre-open trading after reporting 34% profit rise in Q1 but also predicting slowing revenue growth. Also in the networking sector, Finisar (FNSR: chart) dropped 7.1% after the fiber-optic products maker warned that its Q4 revenue would come below previous forecasts. Juniper Networks (JNPR: chart) declined 1.5%.

Dow component Walt Disney & Co. (DIS: chart) lost 2.1% on lower-than-expected revenue increase, although its 27% profit rise beat expectations. Again on the Dow, International Business Machines (IBM: chart) rose 1% after it was upgraded to buy from neutral at Goldman Sachs after, following the tech giant''s buyback move. In other earnings news, Toyota Motor (TM: chart) reported a 9% profit rise on 10% revenue growth in Q1 on strong U.S. and European sales.