That's all from me. Head over to our US site for more market moving news and updates on the Fed. Cheers!

Here's Axel Rudolph, senior technical analyst at online trading platform IG:

We have new research that suggests there could be a lot to play for in bond markets when the Bank of England reveals its next policy move on Thursday.

The current pace of government bond sales by the Bank of England could cost the Treasury up to £96bn over the next four years, the study found.

As the market looks to Threadneedle Street's policy announcement on Thursday, the pace of "quantitative tightening" (QT) will be in focus for government officials and taxpayers alike.

There has been speculation that the Bank may increase the speed of QT from the expected £100bn to £120bn — a rate that would cost the taxpayer over £28bn per year, £4.5bn a year more than current speed.

Read more about what that means here

One of our trending tickers for the day, Vicky McKeever writes:

The world's most valuable company Apple saw billions wiped off its market capitalisation on Monday, after an analyst warned of weak demand for its new iPhone 16.

Shares in the tech company were down nearly 3% at market close on Monday, taking its market valuation to $3.29tn (£2.49tn).

TF International Securities’ analyst Ming-Chi Kuo said in a post on Medium that he had calculated first-weekend pre-order sales for the iPhone 16 to be an estimated 37 million units, around 12.7% lower than first-weekend sales of the iPhone 15 last year.

He said: "One of the key factors for the lower-than-expected demand for the iPhone 16 Pro series is that the major selling point, Apple Intelligence, is not available at launch alongside the iPhone 16 release."

The iPhone 16 is due to hit store shelves on 20 September, but its generative artificial intelligence (AI) platform Apple Intelligence is set to begin its rollout as a software update for US English users in October.

Maxim Group managing director and senior consumer internet analyst Tom Forte told Yahoo Finance on Monday: "I think the challenge for Apple, as reflected in those reports, is that they're trying to get a consumer to buy new hardware, which is coming out in the month of September.

"But the best-selling point for that hardware, especially for consumers in the US — Apple Intelligence, the AI-related features — those aren't coming out until beta next month."

Pedro Goncalves writes:

The pound (GBPUSD=X) has rallied against the dollar, with the US currency trading near its lowest levels of the year as the US Federal Reserve prepares to deliver a rate cut.

It is all but certain that the Fed will deliver a cut on Wednesday and investors are speculating about the size of it.

A 25 basis point drop would be a pivotal move, as many investors hope the decision could lower borrowing costs for companies and improve overall earnings growth.

However, a more aggressive 50 basis point cut would mark the biggest single rate cut in 16 years and the need for such a big reduction would spark concerns of economic trouble ahead.

Former New York Fed president Bill Dudley said there's a "strong case" for a deeper cut as FOMC members attempt to manoeuvre a "soft landing" of the economy. This view, combined with reports from the Financial Times and the Wall Street Journal indicating a split among policymakers, has heightened expectations for a 50 basis point reduction.

READ MORE

The UK's energy regulator has fined Ovo £2.4m after an investigation that found it has not been dealing with customer complaints correctly.

Issues included long delays in dealing with complaints for nearly 1,400 customers, according to Ofgem.

Those affected will receive an average of £271 in compensation. Ovo will also pay £2m to the Energy Industry Voluntary Redress Scheme.

“Consumers deserve a clear and timely response when they make a complaint, and that’s why we stepped in quickly when we identified that Ovo’s performance was falling below acceptable standards," said Jacqui Gehrmann, deputy director of retail compliance at Ofgem.

An Ovo spokesperson said: "We recognise that a particular group of our customers in 2023 waited longer than we’d like for a resolution and were overdue a response from us, so we’ve sent them a letter of apology and compensation to help.”

Markets in China and South Korea were closed on Tuesday for the holiday.

The Nikkei (^N225)charted a course lower in Japan, falling amid jitters about central bank decisions later in the week.

The US Federal Reserve is expected to cut rates for the first time in about four years.

Stocks traded mixed on Monday, with tech names struggling ahead of a crucial week dominated by expectations for the Federal Reserve's first interest-rate cut in four years.

The tech-heavy Nasdaq Composite (^IXIC) fell about 0.5%. The S&P 500 (^GSPC) was up more than 0.1%, while the Dow Jones Industrial Average (^DJI) rose 0.5%, after strong weekly wins for the major stock gauges. A 6% surge in Intel (INTC) stock helped push the Dow to a record high close of 41,622.08.

Elsewhere, techs were under pressure as Apple (AAPL) shares lost ground amid concerns about iPhone 16 sales. The megacap's stock was down about 3% following analysts' findings that early demand for the recently updated smartphone is lagging 2023 levels.

More broadly, stocks are diverging amid rising bets that the Fed will opt for a more drastic 50 basis point cut in its monetary policy decision on Wednesday at the end of its two-day meeting.

Hello again from London. Lucy Harley-McKeown here, ready to publish the markets news of the day.

This morning we've already had B&Q owner Kingfisher's results. Traders are still looking ahead to a host of central bank decisions later in the week.

Let's get to it.