London (CNN Business) 1. Rate relief: Stock markets are rallying after the US Federal Reserve suggested it could cut rates.

Fed Chair Jerome Powell said Tuesday that he's closely monitoring developments on trade. President Donald Trump's trade wars with Mexico and China have in recent days spooked markets, increasing attention on the Fed.

"As always, we will act as appropriate to sustain the expansion," Powell said at a monetary policy conference in Chicago.

Powell did not say whether a rate cut was needed. But his comments suggest the central bank is now considering a move to support the economy.

US stock futures indicate that gains will extend into Wednesday. The Dow is set to rise 80 points, or 0.3%. The Nasdaq and S&P 500 could jump 0.4% and 0.3%, respectively.