The world's major economies were firmly focused on the monetary policy decisions of the Bank of England and the Federal Reserve Bank of America.

In the US, the Federal Reserve held interest rates in the 0 to 0.25% range following the latest Federal Open Markets committee meeting. It said the economy had picked up following a severe downturn but that it is liable to remain weak. In view of this, the Fed expects interest rates to remain low for an extended period of time.

Meanwhile, initial jobless claims data was slightly better than anticipated, dropping to 530,000 in the latest week from a revised figure of 551,000. This was the lowest level registered since July.

In contrast, the existing home sales data was weaker than expected, with a decline to an annual rate of 5.10 million for August, from 5.24 million during the previous month.

Likewise, new orders for long-lasting US manufactured goods fell unexpectedly in August, dropping 2.4%. This was the largest decline registered in seven months, in part as a result of a plunge in commercial aircraft orders.

In the Eurozone, the Purchasing Managers' index continued to improve this month as the services sector rose to a reading of 50.6, above the 50 mark that separates expansion from contraction. However, the manufacturing sector remained below the 50 threshold.

The German IFO index, which gauges the business climate for industry and trade, also rose to a reading of 91.3 in September from August's 90.5.

In the UK, the Bank of England policymakers voted unanimously to hold interest rates at 0.5% and keep the Asset Purchase Scheme at £175 billion in September. The policymakers believe there had been no major economic development in the country to warrant any change. However, members who voted for more funds still thought they had a case, the minutes showed.

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