(Bloomberg) – U.S. equity futures rose as bond yields fell, markets looking unfazed ahead of a key Federal Reserve meeting.
Contracts on the S&P 500 index rose after gains in tech stocks sent the underlying gauge to another record high on Monday. European stocks were led higher by chemical companies, while Asian stocks were mixed. The 10-year Treasury yield fell below 1.5% and the dollar remained stable.
The day before the Fed’s next policy move – and possible clues as to when the central bank will slow the pace of emergency asset purchases – there were few nerves to show. The statement is expected to include updated forecasts, and the expectation is that officials would release any reduction plans well in advance.
“We believe that the market could remain relatively complacent in an environment of low conviction before the Fed meeting tomorrow”, according to Xavier Chapard, global macro strategist at Crédit Agricole SA. “We continue to think that from tomorrow the Fed may be slightly less ultra-dovish than it has been. While he tries not to trigger a meaningful reaction from the market, the question is whether he will be successful. “
Economists expect the so-called dot plot to point to an increase in interest rates in 2023, while the bank is unlikely to signal a reduction in bond purchases until the end of the year.
Elsewhere, crude oil was trading around $ 71 a barrel as investors assessed the prospects for increased demand against extended anti-virus restrictions in some economies.
Bitcoin continued to spin amid a barrage of comments, briefly climbing above $ 41,000 to pull out. The digital currency received a boost after veteran hedge fund manager Paul Tudor Jones re-approved the coin in a TV interview.
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Here are some key events to watch out for this week:
An EU-US summit takes place in Brussels on Tuesday. Data on industrial production, producer prices and retail sales in the United States arrives Tuesday. President Joe Biden and Russian Vladimir Putin meet in Geneva on Wednesday Treasury Secretary Janet Yellen testifies to a House panel on the federal budget on Thursday Rate decisions come from Switzerland and Norway on Thursday Bank of Japan is Friday
Futures on the S&P 500 index rose 0.1% at 9:39 a.m. London time. The Stoxx Europe 600 index gained 0.2%. The MSCI Asia-Pacific index rose 0.3%. The MSCI Emerging Markets Index was little changed.
The Bloomberg Dollar Spot Index was little changed. The euro rose 0.1% to $ 1.2138. The British pound fell 0.1% to $ 1.4102. The onshore yuan weakened 0.1% to 6.402 per dollar. The Japanese yen was little changed at 110.10 per dollar.
The yield on 10-year Treasuries fell one basis point to 1.48%. The yield on two-year Treasury bills was unchanged at 0.16%. Germany’s 10-year yield fell one basis point to -0.26%. Japan’s 10-year yield rose base. point at 0.051%. The UK 10-year yield fell one basis point to 0.734%.
West Texas Intermediate crude rose 0.2% to $ 71.02 a barrel. Brent crude rose 0.2% to $ 73.04 a barrel. Gold weakened 0.1% to $ 1,864.26 an ounce.
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