In every aspect of life, signals are an integral part. In a relationship, a signal from your better half can untangle the question of whether to take the relationship forward or not. If you attend a job interview, a signal from the interviewer questioning your folded shirt can be termed lethal in the overall evaluation. A slight shrug of the shoulder or a smile or even few words can work wonders in the overall scheme of things. Yes, my dear readers. Signals are important in trying to derive the crux of the matter.

In the financial arena, investors are awaiting signals from the Federal Reserve this evening for any clues of further easing i.e. Quantitative Easing. Even the slightest prospect of more easing will propel investors to determine the nature of the economy and will direct the future paths of their investments. The global equity markets have become increasingly uneasy due to the flows of unfavorable growth reports from the second quarter of major economies. After Friday’s disappointed Junes jobs report from the US, expectations for more actions from the central bank has only increased.

However, analysts worldwide opine that the QE3, if implemented, would not solve the impending crisis given the sorry state of affairs in the world’s largest economy. They cite Europe as a major hindrance as the debt-ridden nations of the Euro zone race against time to solve the brewing crisis. Commodities prices have been pushed down due to Asian exports being badly damaged by lowering of the European demand. The chain of events is impacting a lot of what’s going on, and that’s consequently affecting the corporate profits in the longer run.

Hence, investors will be closely following the Federal Reserve’s meeting this evening for any clues and that will consequently affect their investment patterns in the following days.