The Week Ahead: US Federal Reserve set to raise interest rates for the first time since 2006

In September, fears over the global economy, caused by China’s slowing growth, convinced the Fed to hold fire on a rate rise

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Drum roll please. Financial markets are preparing for one of the biggest central banking meetings in history this week, with the US Federal Reserve set to raise interest rates for the first time since 2006.

After a two-day meeting of policymakers, chairman Janet Yellen will reveal on Wednesday whether the US central bank will lift rates off historic lows.

In September, fears over the global economy, caused by China’s slowing growth, convinced the Fed to hold fire on a rate rise despite expectations that it would pull the trigger.

There are concerns that after a bruising week for global stock markets and another hammering for commodity prices, including multi-year lows for oil and iron ore, it could be a case of déjà vu.

Chris Beauchamp, senior market analyst at IG, said: “If the Fed feels that the international situation once again calls for it to stay its hand this week, then we could be witnessing a re-run of September.”

The decision will be make-or-break for the FTSE 100, which crashed last week as traders waited for the all-important decision they hope will kickstart the so-called “Santa Rally” – when stocks traditionally rise over the festive season.

On the company news front, Dixons Carphone is expected to post strong first-half results on Wednesday, with smartphones and TVs flying off shelves in Carphone Warehouse and Currys PC World. Analysts at Numis expect pre-tax profits to surge 35 per cent to £105m.

First-quarter trading for the electricals retailer was robust as it reported a 10 per cent jump in like-for-like sales in the 13 weeks to August, in stark contrast to struggling rival Argos owner Home Retail Group.

Wednesday is also the day of SuperGroup’s interim results, with hopes its popular autumn/winter collection by actor Idris Elba filters through to the bottom line. Earlier this month, the company behind the SuperDry brand said revenues had shot up 22 per cent to £254.9m.

On Tuesday, there are first-half results from Carpetright tomorrow and the shareholder vote on Mediclinic’s £1.4bn takeover of UAE private health group Al Noor Hospitals.