In this June 19 file photo the Washington news conference of Federal Reserve Chair Jerome Powell appears on television screen on the trading floor of the New York Stock Exchange shows the rate decision of the Federal Reserve. The Fed concludes its two-day meeting today, and is expected to cut interest rates. (AP Photo/Richard Drew, File)

WASHINGTON (AP) — Stock markets are mostly down as investors look ahead to an expected interest rate cut by the U.S. Federal Reserve.

Futures for both the Dow and the S&P 500 are down almost 0.1 percent, at 27,033 points and 3,034.75, while European indexes are mostly trading lower this morning.

The Federal Reserve is set to cut its benchmark interest rate today for a third time this year to help sustain the U.S. economic expansion in the face of widespread trade tensions and slower global growth.

But the Fed’s policymakers will likely frustrate anyone who is hoping for a clear signal about what they may do next. The central bank may prefer instead to keep its options open, economists say.

Analysts have forecast that the Fed will reduce the short-term rate it controls — which influences a broad range of consumer and business loans — by one-quarter percentage point year to a range of 1.5 percent to 1.75 percent. A third cut would nearly reverse the four rate hikes that the Fed made last year in response to a strengthening economy.

Global shares mostly retreated today as investors eye the possible interest rate cut in the U.S. while hoping for a breakthrough on the U.S.-China trade front.

Britain’s FTSE 100 was flat at 7,308, while Germany’s DAX shed 0.1 percent to 12,925. The CAC 40 in Paris edged 0.1 percent higher. The Dow and S&P 500 futures contracts appeared headed for a sluggish open, wavering between small gains and losses.

Investors were cautious ahead of a policy announcement later today by the U.S. Federal Reserve, which is expected to cut interest rates again by a quarter of a percentage point. It has cut rates twice since the summer to shield the U.S. from the impact of the trade war and a slowing global economy.

U.S. Treasury yields dipped ahead of the decision. The yield on the 10-year Treasury slid to 1.83 percent from 1.85 percent late Monday.

Meanwhile, reports that China and the U.S. may not reach a trade agreement in time to sign a deal next month at a regional summit put a damper on sentiment.

White House spokesman Judd Deere told reporters Tuesday that both sides were working to finalize a deal, aiming to have Presidents Donald Trump and Xi Jinping sign a deal next month at a Pacific Rim summit in Chile.

But various officials have indicated an agreement might not be ready in time.

“These headlines are an annoying distraction as it provides a not too subtle reminder of how quickly things can turn on the trade war front while psychologically lingering in the back of trader’s minds,” Stephen Innes of AxiTrader said in a commentary.

Japan’s Nikkei 225 index lost 0.6 percent to 22,843.12. Sydney’s S&P ASX 200 sank 0.8 percent to 6,689.50. In South Korea, the Kospi declined 0.6 percent to 2,080.27. Hong Kong’s Hang Seng dropped 0.4 percent to 26,667.71 while the Shanghai Composite index gave up 0.5 percent to 2,939.32.

India’s Sensex gained 0.5 percent to 40,024.02. Shares also rose in Taiwan and Southeast Asia.

Company earnings reports have recently helped lift stock markets. With nearly half of the companies in the S&P 500 having reported results for the July-September quarter, the index is on pace to report a profit drop of 3.5 percent from the prior year, according to FactSet.

That’s not as bad as the roughly 4 percent decline that analysts were expecting, but it would be the first time that profits dropped for three straight quarters since 2015-2016.

In Europe, Italian-American carmaker Fiat Chrysler Automobiles confirmed it is in talks with French rival PSA Peugeot, its second bid this year to reshape the global auto industry which is facing huge challenges with the transition to electric and autonomous vehicles. Shares in Fiat Chrysler shot up nearly 9 percent on the news to 12.75 euros ($14.70) in Milan trading.

ENERGY: Benchmark crude oil fell 12 cents to $55.42 per barrel in electronic trading on the New York Mercantile Exchange. It gave up 27 cents to settle at $55.54 a barrel on Tuesday. Brent crude oil, the international standard, dipped 3 cents to $61.20 a barrel.

CURRENCIES: The dollar dipped to 108.84 Japanese yen from 108.88 yen on Monday. The euro edged up to $1.1115 from $1.1112.