World markets are mixed to start the week. US index futures are split between a 0.2% gain for Dow futures, a 0.5% loss for NASDAQ futures and flat S&P futures. Asia Pacific trading saw the Hang Seng gain 0.3% and the Nikkei lose 0.7%. In Europe, the FTSE is flat and the Dax is down 0.3%.
Commodities are picking up a bit today. US Crude Oil is up 0.9% but still trading below $70.00/bbl, while Copper is up 0.4% and has climbed back up toward $4.25/bbl. Gold is digesting Friday’s rally to a new all time high, slipping 0.2% but holding above $2,600/bbl. Cryptocurrencies are sliding with Bitcoin down 2.0% and Ether down 2.9%.
It’s a big week for central bank meetings headlined by the Fed who is widely expected to announce a 0.25% interest rate cut at 2:00 pm EDT on Wednesday afternoon. FOMC member forecasts on GDP, unemployment, inflation and interest rates are also due at that time which may add more colour on the state of the economy and how aggressive the US central bank may be going forward.
Later in the week, the Bank of England, the People’s Bank of China and the Bank of Japan are also holding meetings. None of these banks are expected to cut rates but it will be interesting to see if the Bank of Japan continues to raise rates or not, having gone back above zero for the first time in years earlier this summer.
This morning the US Empire State Manufacturing Index (11.5 vs street -3.9) was a positive surprise coming in well ahead of a negative street expectation, easing pressure on the Fed to cut more than 0.25%. Tomorrow brings US Retail Sales and Industrial Production and Canada Consumer Prices. UK inflation comes on Wednesday along with US Housing Starts. The economic week wraps up Friday with Canada and UK retail sales