"Fed funds rate was set at 0 percent - 0.25 percent at the same meeting in 2008 – an unprecedented 7 years of unchanged, emergency rates and almost 10 years since a rate hike. The market has priced an 80 percent likelihood of Fed funds moving- probably the most talked about event that hasn't happened over the past three odd years. Indeed, so totemic is this move that investors run the risk of forgetting all the other things that really drive the economy," fixed income specialist at Kames Capital, Adrian Hull said.
Oil prices remain in focus, after U.S. crude settled up 69 cents on Monday, or 1.94 percent, at $36.31 a barrel, pausing a six-day losing streak that took crude to its lowest in nearly seven years.
Internationally traded Brent were up about 2.9 percent on Tuesday, or $1.10, at $39.02 a barrel. U.S. crude gained 3.4 percent, to $37.53 a barrel.
On the data front, U.S. CPI for November was unchanged, in line with expectations. The Empire State manufacturing index fell for a fifth straight month.