Fed policy, blue-chip earnings in focus after rocky week

HOPES of accommodative central bank policies have been a key needle mover in global equity markets since June, dictating sentiment in the face of US-China trade tensions.

With that in mind, the US Federal Reserve's policy decision on Wednesday will be the week's main event, where investors are taking a rate cut of 25 basis points as a given, with further easing from September.

If cuts meet expectations, "it will inaugurate the beginning of a new Fed easing cycle but anything other will trigger an aggressive symmetrical response across a swath of risk assets", Vanguard markets managing partner Stephen Innes said.